Ending Inventory Is Equal to the Cost of Items on Hand

question 168

Multiple Choice

Ending inventory is equal to the cost of items on hand plus

• A) Merchandise in transit sold to customers FOB shipping point
• B) Merchandise in transit sold to customers FOB destination
• C) The cost of all inventory purchased during the period
• D) Merchandise purchased in transit with terms FOB destination

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Definitions:

FDIC

The Federal Deposit Insurance Corporation, a US government agency that insures deposits in banks and thrift institutions.

Bank Deposits

Money placed into banking institutions for safekeeping. These deposits are typically made into checking or savings accounts.

Bank Failures

Occurrences when banks are unable to meet their obligations to depositors and others, often leading to insolvency and closure.

Store of Value

A function of money allowing individuals to preserve purchasing power for future use.