Which of the Following Statements Is Correct

question 27

Multiple Choice

Which of the following statements is correct?

• A)Freight In is subtracted from Purchases to arrive at delivered cost of purchases.
• B)Freight charges that are listed on the invoice received from a supplier are not part of the total credit to Accounts Payable to record the credit purchase.
• C)Another name that may be used for the Freight In account is "Transportation In."
• D)The Freight In account is subtracted from Sales to get Net Sales.

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Definitions:

Stakeholder Responsibility

The obligation of an organization to act in ways that benefit its stakeholders, including customers, employees, and the wider community.

Ethics

The moral principles that govern a person's behavior or the conducting of an activity, often playing a critical role in decision-making.

Profitability

The ability of a business to generate more revenue than expenses, resulting in a profit.

Corporate Philanthropy

The practice where a company allocates a portion of its earnings or assets to support nonprofit organizations or philanthropic endeavors.