· Question 16
Goods that have been purchased FOB destination but are in transit, should be excluded from a physical count of goods by the buyer.
· Question 17
Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with the physical movement 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 stockholders‘ 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 in the accounting period in which the performance obligation is satisfied.
· Question 22
Lankston Company began the year by issuing $ 90,000 of common stock 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 year?
· Question 23