Your company places an order for inventory with suppliers for delivery in two weeks.

A. This is an activity that does not affect the balance sheet.
B. This is an internal event and it does not affect the balance sheet.
C. This is an internal event that affects the balance sheet.
D. This is an external exchange and it affects the balance sheet.


Answer: A

Business

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Damaged and obsolete goods that can be sold:

A. Are included in inventory at their net realizable value. B. Should be disposed of immediately. C. Are included in inventory at their full cost. D. Are assigned a value of zero. E. Are never counted as inventory.

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Fill in the blank(s) with the appropriate word(s).

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