Goods in Transit Are Included in a Purchaser's Inventory

question 76

Multiple Choice

Goods in transit are included in a purchaser's inventory:

• A) At any time during transit.
• B) When the purchaser is responsible for paying freight charges.
• C) When the supplier is responsible for freight charges.
• D) If the goods are shipped FOB destination.
• E) After the half-way point between the buyer and seller.

Understand the impact of issuing bonds at a discount, premium, or face value on interest expense and payments.

Calculate the carrying value of bonds using the straight-line method of amortization.

Account for the issuance of bonds, including the journal entries for bonds issued at a discount or premium.

Understand the concept of bond interest payable and its classification on financial statements.

---

Definitions:

Decimal Places

The positions or digits to the right of the decimal point in a decimal number, indicating fractions of a whole.

Divide

To Divide means to split or separate a number or quantity into two or more parts, often to distribute it evenly or to calculate a ratio or proportion.

Word Processing

The use of computer software to create, edit, and print documents.

Office Administrator

An individual responsible for overseeing the daily operations of an office.