If the Shipping Terms Are FOB Shipping Point and the Freight

question 87

Multiple Choice

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

• A)Inventory and credit to Cash for $200.
• B)Accounts Payable and credit to Inventory 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:

Goals

Specific, measurable objectives that an individual or organization plans to achieve within a set timeframe.

Vision Statement

A future-oriented declaration of an organization's goals and aspirations, intended to guide its internal decision-making.

Strategic Planning

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Chief Executive Officer

The highest-ranking executive in a company or organization, responsible for making major corporate decisions and managing overall operations.