It Is a Common and Preferred Current Practice for Suppliers

question 39

True/False

It is a common and preferred current practice for suppliers to arrange shipment to a purchaser and simply include the transportation cost as part of the purchase cost.

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Definitions:

Operating Activity

Transactions and other events that affect the net income of a business, typically from primary business operations.

Statement of Cash Flows

A document that outlines the effects of changes in accounts on the balance sheet and revenue on cash and cash equivalents, categorized by operating, investing, and financing actions.

Financial Statement

Documents that provide an overview of a company’s financial condition, including balance sheet, income statement, and cash flow statement.

Cash Receipts

The collection of cash during a specific period, often recorded in financial accounting to track the inflow of cash.