Which Transaction Would Be Included in the Year End Inventory

question 79

Multiple Choice

Which transaction would be included in the year end inventory?

• A)Goods received on consignment at year end.
• B)Goods shipped out on consignment at year end.
• C)Goods shipped out F.O.B. shipping point at year end.
• D)Goods received after year end, shipped FOB destination.

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Definitions:

Repayment Of Principal

The process of paying back the original amount borrowed in a loan, separate from interest payments.

Equal Installments

A method of loan repayment where the borrower pays the lender a constant amount of money periodically, covering both principle and interest.

Repay

The action of paying back borrowed money to the lender.

Compounded Annually

Describes the method where the interest earned in one period is added to the principal sum, and the total becomes the basis for calculating interest in the next period, done once a year.