Which of the Following Would Not Be Included in Latimer

question 103

Multiple Choice

Which of the following would not be included in Latimer Company's ending inventory?

• A)Goods shipped from a supplier with terms of FOB shipping point.
• B)Goods shipped to customers with terms of FOB destination.
• C)Samples provided to a customer with the understanding that they would be returned to Latimer at the beginning of the next year.
• D)Goods shipped to customers with terms of FOB shipping point.

---

Definitions:

Plant Asset

Long-term tangible assets that are used in the production of goods or services and are not intended for resale.

Productive

Characterized by achieving significant results or output relative to the input or effort expended.

Total Asset Turnover

A financial ratio that measures the effectiveness of a company in utilizing its assets to generate sales or revenue.

Net Sales

The total revenue from goods or services sold by a company, after deducting returns, allowances for damaged goods, and discounts.