Which of the Following Is True of Freight In

question 149

Multiple Choice

Which of the following is true of freight in?

• A)It is an administrative expense.
• B)It is a selling expense.
• C)It is the transportation cost on purchases.
• D)It is the transportation cost on sales.

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Definitions:

Equipment

Tangible property used in operations, such as machinery and office equipment, which is not intended for sale.

Accounting Equation

The fundamental formula representing the relationship between assets, liabilities, and equity (Assets = Liabilities + Equity).

Asset

An economic resource owned or controlled by an individual or business, expected to provide future benefits.

Liability

Any financial debt or obligation that a company owes, which must be settled over time through the transfer of economic benefits including money, goods, or services.