Freight Out Is an Addition to the Merchandise Inventory Account

question 151

True/False

Freight out is an addition to the Merchandise Inventory account if the seller uses the perpetual inventory system.

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Definitions:

Call's Value

Represents the price of an option to buy a particular stock or asset at a set price within a specific time frame.

ESOs

Employee Stock Options; the right granted to employees to buy a set amount of company shares at a fixed price.

Job Leaving

This refers to the act of an employee voluntarily terminating their employment with a company.

American Call Option

An option contract that allows the holder to buy an asset at a specific price before or at the expiration of the option.