Some Firms That Dispose of Only a Small Part of Their

question 66

Multiple Choice

Some firms that dispose of only a small part of their total output by consignment shipments fail to make any distinction between consignment shipments and regular sales.Which of the following would suggest that goods have been shipped on consignment?

• A) Numerous shipments of small quantities.
• B) Numerous shipments of large quantities and few returns.
• C) Large debits to accounts receivable followed by small periodic credits.
• D) Large debits to accounts receivable followed by large periodic credits.

---

Definitions:

Arithmetic Sequence

A sequence of numbers in which each term after the first is found by adding a constant difference to the preceding element.

Nth Partial Sum

The sum of the first 'n' terms in a sequence, used in series calculations.

Geometric Sequence

A sequence in which each number following the first is generated by multiplying the former number by a fixed, nonzero factor, this factor is identified as the common ratio.

Partial Sum

The sum of a portion of a sequence of terms, or a method of summing certain numbers by grouping.