Kristin's Boutiques Has Identified the Following Items for Possible Inclusion

question 111

Multiple Choice

Kristin's Boutiques has identified the following items for possible inclusion in its December 31 inventory. Which of the following would not be included in the year-end inventory?

• A) Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristin's Boutique as of December 31.
• B) Kristin has in its warehouse merchandise on consignment from Abby Co.
• C) Kristin has sent merchandise to various retailers on a consignment basis.
• D) Kristin has inventory on hand which has been returned by customers because of wrong size.

---

Definitions:

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Syndicate

A group of individuals or organizations combined to promote some common interest, often in business or finance.

Joint Stock Company

A form of business organization in which capital is divided into shares owned by shareholders, who enjoy limited liability and whose investment in the company can be bought and sold.

Manager-Managed

A management structure typically used in a Limited Liability Company (LLC) where one or more appointed managers are responsible for the company's day-to-day operations, as opposed to being member-managed.