If goods are sold on terms FOB shipping point, the ________
A) seller normally pays the transportation costs
B) buyer normally pays the transportation costs
C) buyer and the seller split the transportation costs
D) shipping company bears the transportation cost
B
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From 1972 to 1974, the expected real interest rate on short-term bonds averaged about +2 percent, but the realized real interest rate averaged about ?2 percent. The main reason for the difference was that
A. actual inflation was about 4 percentage points lower than expected inflation. B. actual inflation was about 4 percentage points higher than expected inflation. C. a monopoly cornered the market on short-term bonds. D. nominal rate of interest was zero.
Which of the following transactions has an effect on the statement of cash flows?
a. The sale of preferred stock b. The declaration of a cash dividend c. A small stock dividend d. A large stock dividend
A reader might find information about gain contingencies in an annual report by examining
A) a contingent account receivable. B) an accrued revenue. C) a deferred revenue. D) footnote disclosures.
Which of the following types of risk is of critical importance to auditors in performing tests of controls?
A. The risk of assessing control risk too low. B. The risk of incorrect acceptance. C. The risk of incorrect rejection. D. The risk of assessing control risk too high.