4 marks of this Question Financial Accounting[4 marks]What determines the proper account classification of freight chargeson new equipment purchases?a) Company's shipping department policyb) Whether freight is prepaid or collectc) Nature of the equipment purchasedd) Capitalize as part of equipment cost

Explanation of Freight Charges: Freight charges represent the costs associated with transporting…

Answered: Financial Accounting [4 marks] What…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 18Q: Which statement and where on the statement is freight-out recorded? Why is it recorded there?

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Similar questions

Who bears the freight when the terms of sale are (a) FOB shipping point, (b) FOB destination?
Which statement and where on the statement is freight-out recorded? Why is it recorded there?
Where should goods in transit that where recently purchased f.o.b. destination be included on the balance sheet? A) Accounts payable. B) Inventory C) Equipment D) Not the balance sheet
Which of the following accounts is an example of a contra-asset?A) Cost of Goods Sold B)Sales Discounts C) Purchases D) Deferred Revenue E) LIFO Reserve
ANSWER
Which of the following statements is correct? Group of answer choices A)Revenue is recognized at the time of shipment when goods are shipped FOB destination. B)Sales returns and allowances are reported as operating expenses on an income statement. C)Revenue is recorded when title and risks of ownership transfer to the buyer. D)Sales discounts are reported as operating expenses on an income statement.
According to International Financial Reporting Standards (IFRS), which of the following is a key criterion for recognizing revenue from the sale of goods? A) Transfer of legal ownership B) Physical delivery of goods C) Customer payment received D) Completion of production E) Initiation of manufacturing process
Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will result in a debit to Inventory by the purchaser and a debit to Freight-Out by the seller.
Goods or products a company owns and expects to sell to its customers A) Sales Merchandise Inventory C. Cost of goods sold Purchases
Which accounting concept requires that any goods taken from inventory by the owner aretreated as drawings?A. AccrualsB. Business entityC. PrudenceD. Going concern
Which of the following is treated as business expense? a. Installation cost of business equipment b. Freight-in c. Insurance while the goods are in transit to the taxpayer d. Freight-out
How can I find a company's: Total Asset Turnover inventory Turnover Measures Accounts Receivable Turnover

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Financial Accounting [4 marks] What determines the proper account classification of freight charges on new equipment purchases? a) Company's shipping department policy b) Whether freight is prepaid or collect c) Nature of the equipment purchased d) Capitalize as part of equipment cost