In a Perpetual Inventory System,if the Terms of Sale Are

question 29

Multiple Choice

In a perpetual inventory system,if the terms of sale are FOB shipping point the journal entry to record the payment of freight charges on purchased merchandise includes a:

• A)debit to Inventory
• B)credit to Freight Out
• C)credit to Accounts Payable
• D)debit to Cost of Goods Sold

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Definitions:

Dividend Payments

Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Comparative Data

Information that is compared across different time periods, companies, or other variables to analyze performance or condition.

Investment Classification

The categorization of investments based on their characteristics, risk, and objectives.

Statement of Financial Position

A financial statement that outlines an organization's assets, liabilities, and equity at a specific point in time; commonly known as a balance sheet.