1. If the shipping terms indicate that the seller owns the goods until delivered to the buyer, this arrangement is known as
2. FOB shipping point
3. FOB carrier
4. Goods in transit
5. FOB destination
6. When purchasing an entire company, what is the accounting term for the purchase price in excess of identifiable assets?
7. Intangible asset
8. Patent
9. Excess value
10. Goodwill
11. Boone Company purchased a piece of machinery by paying $5,000 cash. In addition to the purchase price, the company incurred $100 freight charges. The machine has an estimated useful life of 5 years and will require $125 for insurance over that period. Boone Company would record the cost of the machine at
12. $5,000
13. $5,225
14. $5,100
15. $5,125
16. For each of the business activities listed below, indicate whether it is an operating, an investing or a financing activity.

1. Paying utility bills - Operating
2. Purchasing land -Investing
3. Borrowing money from a bank - Financing

1. Drag and drop the choices from below.

5. For each of the business activities listed below, indicate whether it is an operating, an investing or a financing activity.

• Purchasing inventory for resale
• Purchasing equipment
• Selling stock

Drag and drop the choices from below to the above selection

-Operating -Financing -Investing

1. For each of the business activities listed below, indicate whether it is an operating, an investing or a financing activity.

• Paying salaries to employees
• Selling goods for a profit
• Buying stock from another company

Drag and drop the choices from below to the above selection

-Operating -Investing -Operating