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:

Interest Recognize

The accounting practice of recording interest earned or incurred in the period it is applicable, regardless of when it is paid.

Note Accepted

A written promise to pay a specified amount of money, known as a promissory note, which has been accepted or endorsed.

Accrued Interest

Interest that has been incurred but not yet paid, typically relating to bonds or loans, calculated from the last payment date up to the current date.

Note Payable

A liability in written form that promises to pay a specified amount of money at a future date.