Reeves Company Is Taking a Physical Inventory on March 31

question 15

Multiple Choice

Reeves Company is taking a physical inventory on March 31, the last day of its fiscal year.Which of the following must be included in this inventory count?

• A)Goods in transit to Reeves, FOB destination
• B)Goods that Reeves is holding on consignment for Parker Company
• C)Goods in transit that Reeves has sold to Smith Company, FOB shipping point
• D)Goods that Reeves is holding in inventory on March 31 for which the related Accounts Payable is 15 days past due

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Definitions:

Government Regulation

The act of controlling business operations, activities, or market entries through laws and rules set by the government to protect public interests.

Economic Expansion

A phase of the business cycle during which the economy grows, characterized by increased output, employment, and consumer spending.

Laissez-faire Approach

An economic philosophy of minimal governmental intervention in the market and the operations of businesses.

Technological Progress

Advances in technology that improve production efficiency, product quality, and innovation across sectors.