As Part of an Inventory Purchase, BSP Corporation Paid a Freight

question 18

Multiple Choice

As part of an inventory purchase, BSP Corporation paid a freight bill.The proper treatment of the freight cost in BSP's accounting information system is:

• A)Capitalize to inventory.
• B)Capitalize to cash.
• C)Expense to inventory.
• D)Expense to cash.

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Definitions:

Average Age

The mean age of a group of individuals, calculated by dividing the sum of their ages by the number of individuals.

Median

The middle value in a data set, which divides the data into two halves.

Descriptive Statistics

Statistical measures that summarize and describe the features of a collection of information, such as mean, median, and mode.

Summarizing Data

The process of presenting large amounts of data in a compact, easily interpretable form, often using statistical measures.