Freight Costs Incurred by a Seller on Merchandise Sold to Customers

question 49

Multiple Choice

Freight costs incurred by a seller on merchandise sold to customers will cause an increase

• A)in the selling expenses of the buyer.
• B)in operating expenses for the seller.
• C)to the cost of goods sold of the seller.
• D)to a contra-revenue account of the seller.

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Definitions:

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States.

Secured Transactions

involve agreements in which the borrower provides the lender a security interest in personal property as collateral for a loan.

Personal Property

Any property that is not real property, including movable objects, vehicles, furniture, and intellectual property.

Security Agreement

A legal document that provides a lender a security interest in a specific asset or property pledged as collateral for a loan.