At the Year-End Inventory Count, If Goods in Transit Are

question 104

Multiple Choice

At the year-end inventory count, if goods in transit are shipped FOB destination, they should be included in the inventory count of

• A)the seller.
• B)the buyer.
• C)the shipping company.
• D)neither the buyer nor the seller.

Apply concepts related to cash flow from operating activities.

Analyze cash flows from investing activities.

Determine cash flows from financing activities.

Calculate and interpret cash collected from customers and cash paid to suppliers.

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Definitions:

Intra-entity Transfers

Transactions involving assets, services, or funds between divisions, departments, or affiliates within the same entity.

Intra-entity Gross Profit

Gross profit that arises from transactions within the same entity, often eliminated in consolidated financial statements.

Consolidation Process

The procedure of combining the financial statements of separate but related entities to present as one entity for financial reporting.

Consolidated Cost Of Goods Sold

The aggregated cost of goods that have been used up in the production of goods or services sold by a company and its subsidiaries.