Reference no: EM132650521

Question 1: Who is responsible for the freight cost when the terms are FOB destination?

Select one:

a. the seller
b. the buyer
c. the customer
d. either the buyer or the seller

Question 2: Both accounts receivable and notes receivable represent claims that are expected to be collected in cash.

Select one:

• True
• False

Question 3: FIFO is the inventory costing method that follows the physical flow of the goods.

Select one:

• True
• False

Question 4: In preparing a bank reconciliation, the amount indicated by a debit memo for bank service charges is added to the balance per company's records.
Select one:

• True
• False

Question 5: The direct write-off method records bad debt expense in the year the specific account receivable is determined to be uncollectible.

Select one:

• True
• false

Question 6: Under the LIFO inventory costing method, the most recent costs are assigned to ending inventory.

Select one:

• True
• False