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GalinKa [24]
3 years ago
5

A company implements the following policy regarding inventory in transit: Goods purchased are included in inventory records, whi

le goods sold are not included in inventory records. Management feels this policy is reasonable because it assigns inventory in transit to the party that initiated the transactions. Which of the following concepts is management not considering in implementing this policy?
a. The kelihood that inventory purchased or sold will be returned.
b. The quantity of the inventory involved in the transaction.
c. The party who has title to the inventory while in transit.
d. The materiality of shipping costs.
Business
1 answer:
a_sh-v [17]3 years ago
8 0

Answer:

c. The party who has title to the inventory while in transit.

Explanation:

If you sell or buy FOB shipping point, then you could use this type of accounting method. The title of the goods is transferred immediately (as soon as the goods leave the seller's premises). But if the transactions are FOB destination, the title of the goods is transferred only after the goods have been delivered.

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Answer:

Adjusting Entries

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Explanation:

On December 31, six months have been accrued and all of the amounts of prepaid insurance became accrued. hence it will be recorded as an expense.

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Answer:

The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.

Explanation:

the duration of the perpetuity = (1+YTM)/YTM

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the weights of the bonds = w

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21*w =  11

w = 0.52

Therefore, The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.

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Explanation:

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