When Goods Are Shipped FOB Destination and a Periodic Inventory

question 167

Multiple Choice

When goods are shipped FOB destination and a periodic inventory system is used, the buyer would:

• A)debit Freight In for the amount of the transportation charges.
• B)debit Delivery Expense for the amount of the transportation charges.
• C)make no journal entry for the transportation charges.
• D)debit Inventory for the amount of the transportation charges.

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Definitions:

Independent Variables

Variables in an experiment that are manipulated or changed to observe their effect on dependent variables.

Combinations

Choosing elements from a broader group without regard to the sequence in which they are selected.

Main Effect

The direct impact of an independent variable on a dependent variable in an experiment.

Factorial Research

A type of experimental design where two or more factors (independent variables) are simultaneously varied to observe their effect on a dependent variable.