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​Data IncBuys Merchandise Worth $275 on Account, Terms FOB Shipping Point

Question 102

Multiple Choice

​Data Inc.buys merchandise worth $275 on account, terms FOB shipping point, and pays the freight cost of $35.As a result of this transaction, Data's:


A) ​liquidity increases.
B) ​profitability remains unchanged.
C) ​liquidity decreases.
D) ​profitability increases.

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