Computers for You Is a Retailer Specializing in Selling Computers

question 91

Multiple Choice

Computers For You is a retailer specializing in selling computers and related equipment.During 2011, Computers For You sells $200,000 of merchandise to Sandcastles, Inc.Computers For You incurs $24,000 of freight costs associated with these sales.Which of the following is true regarding how this $24,000 is treated on the financial statements?

• A)Computers For You will report the $24,000 as part of merchandise inventory on the statement of financial position.
• B)Sandcastles, Inc.will report the $24,000 as part of merchandise inventory on the statement of financial position.
• C)Computers For You will report the $24,000 as part of operating expenses on the income statement.
• D)Sandcastles, Inc.will report the $24,000 as an accounts receivable on the statement of financial position.

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Definitions:

Charismatic Leader

A leadership style characterized by the ability to inspire and motivate followers due to the leader's charm and persuasive skills.

Expressive Communication

A form of communication where the main purpose is to express one's feelings or emotions rather than to convey information.

Participative

A leadership or decision-making style characterized by involving employees or members in the process, promoting engagement and input.

Adaptive

The ability or tendency to adjust or change in response to new conditions, challenges, or environments, often considered a key trait for survival and success.