It Is Common and Preferred Practice for Suppliers to Arrange

question 12

True/False

It is common and preferred 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:

Post-Closing Trial Balance

A list of all accounts and their balances after the closing entries have been made, used to verify the equality of debits and credits and prepare for the next accounting period.

Supplies Expense

An expense account that records the cost of consumable items used during an accounting period, such as office supplies.

Purchases

Transactions where goods or services are exchanged for money, typically recorded in the accounting period in which they occur.

Income Summary Account

An income summary account is an account used in the closing process that temporarily holds the balances of all income and expense accounts before transferring the net result to capital or retained earnings.