Goods that have been purchased FOB destination but are in transit, sh ould be excluded from a physical count of goods by the buyer.
· Question 17 Management may choose any inventory costing method it desires as lo ng as the cost flow assumption chosen is consistent with the physical m ovement of goods in the company.
· Question 18 Which of the following would not be classified as a long-term liability?
· Question 19 The economic resources that are owned by a business are called stockh olders‘ equity.
· Question 20 An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system.
· Question 21 The revenue recognition principle dictates that revenue be recognized i n the accounting period in which the performance obligation is satisfie d.
· Question 22 Lankston Company began the year by issuing $ 90,000 of common stoc k for cash. The company recorded revenues of $ 825,000, expenses of $ 720,000, and paid dividends of $ 45,000. What was Lankston‘ s net income for the ye ar?
· Question 23 The multiplestep income statement is considered more useful than the single-