Question

In: Accounting

1. Goods in transit which are shipped f.o.b. destination should be A. included in the inventory...

1. Goods in transit which are shipped f.o.b. destination should be
A. included in the inventory of the seller.

B. included in the inventory of the buyer.

C. included in the inventory of the shipping company.

D. none of these answers are correct.

2. What is the primary difference between an ordinary annuity and an annuity due?

A. Annuity due only relates to present values.

B. The timing of the periodic payment.

C. Ordinary annuity only relates to present values.

D. The interest rate.

3. Which of the following properly describes a deferral?

A. Cash is paid in the same time period that an expense is incurred.

B. Cash is paid after expense is incurred.

C. Cash is received after revenue is recognized.

D. Cash is received before revenue is recognized.

4. What is the quality of information that is capable of making a difference in a decision?

A. Materiality

B. Timeliness

C. Faithful representation

D. Relevance

Expert Solution

1. Option A

Goods shipped FOB destination belongs to the seller until they are received by the buyer.

2. Option B

Annutiy due - payments occurring at the beginning of each period

Ordinary annuity - payments occurring at the end of each period

3. Option D

Deferral implies the amount received in advance before the performance obligation is met

4. Option D

ekkarill92 answered 2 years ago

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