If the Shipping Terms Are FOB Shipping Point and the Freight

question 113

Multiple Choice

If the shipping terms are FOB shipping point and the freight bill is $200, the purchaser, using a periodic inventory system would record payment of the freight with a debit to:

• A)Inventory and credit to Cash for $200.
• B)Freight In and a credit to Cash for $200.
• C)Inventory and credit to Purchases Discounts for $200.
• D)Purchases Discounts and credit to Inventory for $200.

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Definitions:

Transnational Expansion

The growth of an organization or movement beyond its original national boundaries to encompass participation or influence in multiple countries.

Benjamin Barber

An American political theorist known for his work on democracy and civic participation, particularly in the context of globalization.

Anthony Giddens

A prominent British sociologist known for his theory of structuration, which explores the relationship between individual actions and social systems.

Ulrich Beck

A German sociologist known for his work on modernization, ecological problems, individualization, and globalization.