Augustus, Inc buys designer clothing to sell in its retail stores. Since much of the merchandise comes from New York and Europe, Augustus must pay freight charges to get the merchandise shipped in. Which of the following statements must be true?
A) Transportation-in, paid by Augustus, is added to the inventory account under the periodic system.
B) Transportation-in, paid by Augustus, is subtracted from purchases under the periodic system.
C) Freight charges are only paid by a buyer in a periodic system.
D) Transportation-in is included in the total cost of purchases used to determine cost of goods sold in a periodic system.
D
You might also like to view...
In the questions that follow, you will be asked to identify the blanks on the below diagram using the word bank: NADPH, NADP, ATP, ADP + P, carbon dioxide, oxygen, carbohydrate, water. Briefly explain the significance of each item.
H is ________.
What will be an ideal response?
The fact that employees take on special role-specific responsibilities within an economic system that benefits everyone is one reason offered for the claim that these responsibilities override other ethical considerations.
Answer the following statement true (T) or false (F)
Why is it most important for a salesperson to invest time in preparing for a group sales presentation?
A. Present the data from memory B. Prevent any questions from being raised C. Avoid having to reference the proposal D. Meet the different needs of each group member E. Encourage more group involvement
If a word you choose in a presentation has a different meaning for different people in the audience, your problem is one of symbolism
Indicate whether the statement is true or false