Reeves Company Is Taking a Physical Inventory on March 31

question 15

Multiple Choice

Reeves Company is taking a physical inventory on March 31, the last day of its fiscal year.Which of the following must be included in this inventory count?

• A)Goods in transit to Reeves, FOB destination
• B)Goods that Reeves is holding on consignment for Parker Company
• C)Goods in transit that Reeves has sold to Smith Company, FOB shipping point
• D)Goods that Reeves is holding in inventory on March 31 for which the related Accounts Payable is 15 days past due

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Definitions:

Long-term Enterprise

A business or company designed with the intention of achieving objectives and growth over an extended period, focusing on sustainability and long-range planning.

Strategic Planning Process

A systematic series of steps that an organization follows to define its strategy or direction and make decisions on allocating resources to pursue this strategy.

Mission Statement

A brief description of a company's fundamental purpose, outlining its objectives and guiding principles.

Heart

In a biological context, it is the muscle that pumps blood through the circulatory system; in a metaphorical sense, it can be considered the core or central part of something.