A Company Using the Perpetual Inventory Method Paid $250 Cash

question 101

Multiple Choice

A company using the perpetual inventory method paid $250 cash to have goods delivered from one of its suppliers. The payment of $250 for transportation-in is considered:

• A)an asset source transaction
• B)an asset exchange transaction
• C)an asset use transaction
• D)a claims exchange transaction

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Definitions:

Sagittal

Refers to a plane or section that divides the body into right and left portions.

Transverse

Relating to or extending across something at a right angle.

Coronal

refers to a direction in anatomy denoting a plane that divides the body into frontal (anterior) and back (posterior) parts.

Horizontal

Relating to or situated at a right angle to the vertical; parallel to the ground or to the horizon.