Computers for You Is a Retailer Specializing in Selling Computers

question 52

Multiple Choice

Computers For You is a retailer specializing in selling computers and related equipment.Which of the following would not be reported in the merchandise inventory account reported on the statement of the financial position for Computers For You at December 31, 2011?

• A)Computers purchased for resale during November 2011.
• B)Shelving materials purchased during December 2011.
• C)Freight costs related to the computers purchased in November.
• D)all of the choices are included in the merchandise inventory account at December 31, 2011.

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Definitions:

Investor

An individual or organization that allocates capital with the expectation of receiving financial returns.

Rate

The percentage at which interest is charged or paid, or a measure of change over time.

Compound-Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Canada Savings Bond

A financial product offered by the Government of Canada that provides a competitive, fixed interest rate over a specified period.