Answer:
When FOB shipping point is used, buyer pays the freight. When FOB destination is used, the seller pays the freight.
a. Purchased merchandise with freight costs of $650. The merchandise was shipped FOB shipping point.
- the Box Company is responsible for paying the freight charges ($650) and they are classified as product costs.
b. Shipped merchandise to customers, freight terms FOB shipping point. The freight costs were $310.
c. Purchased inventory with freight costs of $1,500. The goods were shipped FOB destination.
d. Sold merchandise to a customer. Freight costs were $520. The goods were shipped FOB destination.
- the Box Company is responsible for paying the freight charges ($520) and they are classified as period costs.
When a social media firm needs funds to expand, it decides to sell stock. An initial public offering is the first time a company's shares are sold directly to the public (IPO). Hence, the correct answer is IPO.
<h3>What is
an initial public offering?</h3>
An initial public offering (IPO) or stock launch is a public sale in which a company's shares are offered to institutional and, in most cases, individual investors. One or more investment banks often underwrite an IPO, as well as arrange for the shares to be listed on one or more stock exchanges. A privately owned corporation becomes a public company through this procedure, referred to colloquially as floating or going public. Initial public offerings (IPOs) can be used to raise additional equity capital for firms, to monetize the assets of private shareholders such as company founders or private equity investors, and to make current holdings or future capital raising easier to trade by becoming publicly traded.
To learn more about the initial public offering, click
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Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
understated assets, retained earnings, and net income
Explanation:
As in the given case, the inventory balance at the end of the year does include the $10,000 of inventory plus it also excluded from the physical count
So, if the error is not found, the effect of this error is assets are understated instead of overstated which results the retained earnings and the net income understated
