Which Goods in Transit Would Be Recorded in Inventory at Year

question 123

Multiple Choice

Which goods in transit would be recorded in inventory at year end?

• A)Goods sold with terms F.O.B. destination point that were shipped at year end.
• B)Goods sold with terms F.O.B. shipping point that were shipped before year end.
• C)Goods purchased F.O.B. destination that have not been received by year-end.
• D)Goods returned for credit before year-end, with terms F.O.B. shipping point.

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Definitions:

Default Rate

The percentage of borrowers who fail to repay their loans or meet contractual obligations.

Monthly Interest Rate

The percentage of an amount of money which is charged or paid as interest for one month.

Restocking Costs

The expenses associated with replenishing inventory or goods in a business after sales or usage.

Order Cost

The total expenses associated with placing an order for goods or services, including procurement, delivery, and handling fees.