If a Purchaser Using a Perpetual System Agrees to Freight

question 182

Multiple Choice

If a purchaser using a perpetual system agrees to freight terms of FOB shipping point, then the

• A) Merchandise Inventory account will be increased.
• B) Merchandise Inventory account will not be affected.
• C) seller will bear the freight cost.
• D) carrier will bear the freight cost.

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Definitions:

Mean Value

The average of a set of numbers, calculated by dividing the sum of all the values by the number of values.

Scores

Quantitative values assigned to individuals or items for the purpose of ranking, selection, or comparison.

Exam Mean

The average score obtained by students on an exam, calculated by summing all the scores and dividing by the number of students who took the exam.

Increase

A rise or growth in quantity, size, or intensity.