1. What do we call items that have been ordered by a business, but have not yet been received? a.transit inventory b.shipped goods c.goods in transit d.potential goods

2.Where do costs related to inventory appear on an organizations financial statements? a.Current asset on the balance sheet b.Expenses on the statement of revenues and expenses c.Both of the above d.None of the above

3. The cash discount (also known as purchase discount or sale discount) is given to customers for a.good business relations b.early payments c.bulk purchase d.frequent purchases