A Freight Forwarder Breaks One Large Shipment into Multiple Small

question 144

True/False

A freight forwarder breaks one large shipment into multiple small shipments so that it can be transported by trucks or aircraft with limited cargo capacities.

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Definitions:

Adjusting Entry

At the close of an accounting cycle, adjusting entries are recorded in the journal to apportion revenues and expenses to the time frame in which they were truly incurred.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded so far for an asset, reducing its book value on the balance sheet.

Useful Life

The estimated duration over which an asset is expected to be economically useful to its owner.