Computers for You Is a Retailer Specializing in Selling Computers

question 34

Multiple Choice

Computers For You is a retailer specializing in selling computers and related equipment.During 2015, Computers For You sells $200,000 of merchandise to Sandcastles, Inc.Computers For You incurs $24,000 of freight costs associated with these sales.Which of the following is true regarding how this $24,000 is treated on the financial statements?

• A)Computers For You will report the $24,000 as part of merchandise inventory on the statement of financial position.
• B)Sandcastles, Inc.will report the $24,000 as part of merchandise inventory on the statement of financial position.
• C)Computers For You will report the $24,000 as part of operating expenses on the income statement.
• D)Sandcastles, Inc.will report the $24,000 as an accounts receivable on the statement of financial position.

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Definitions:

Job Satisfaction

The level of fulfillment or contentment an individual experiences with their job, including aspects such as work environment, role clarity, and recognition.

Positively

In a manner that is optimistic or constructive, often emphasizing the good aspects of a situation or contributing positively towards an outcome.

Various Aspects

Pertains to the diverse components or facets that together constitute a whole in any situation or study.

Autonomy

The extent to which a job provides an employee with discretion and independence to schedule their work and determine the procedures in carrying it out.