ch8 - Question1 (1point) Save When using a perpetual...

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Question 1 (1 point) Save
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     When using a perpetual inventory system, freight charges on goods purchased are debited to Freight- In.   True False Question 2 (1 point) Save      If a supplier ships goods f.o.b. destination, title passes to the buyer when the supplier delivers the goods to the common carrier.   True False Question 3 (1 point) Save      If ending inventory is understated, then net income is understated.   True False Question 4 (1 point) Save      If both purchases and ending inventory are overstated by the same amount, net income is not affected. True False Question 5 (1 point) Save      Freight charges on goods purchased are considered a period cost and therefore are not part of the cost of the inventory.   True False Question 6 (1 point) Save      Purchase Discounts Lost is a financial expense and is reported in the “other expenses and losses” section of the income statement.        True
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False Question 7 (1 point) Save     
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This note was uploaded on 11/16/2010 for the course ACCT acct 103 taught by Professor Rishard during the Spring '10 term at American River.

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ch8 - Question1 (1point) Save When using a perpetual...

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