Which of the Following Would Not Be a Component of the Year-End

question 117

Multiple Choice

Which of the following would not be a component of the year-end inventory balance?

• A)Freight-in costs.
• B)Inventory inspection costs.
• C)Inventory preparation costs.
• D)Inventory-related selling costs.

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Definitions:

Deferred Annuity

An insurance product that delays income payments until the investor elects to receive them, which can be many years after the initial investment.

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounded at the end of each period.

Compounded Semi-annually

Interest calculation method where interest is added to the principal twice a year, increasing the amount on which future interest is calculated.

Bequest

A transfer of personal property or assets to a beneficiary as dictated by the will of the deceased.