oods in transit are included in a purchaser's inventory: Multiple Choice At any time during transit If the goods are shipped FOB shipping point

Question

Cloie Jomariz P. Cudiamat · Accepted Answer

Question 1: Goods in transit

The correct answer is: If the goods are shipped FOB shipping point.

Reasoning: Under "FOB (Free on Board) shipping point" terms, ownership (title) of the goods transfers from the seller to the buyer as soon as the goods leave the seller's shipping dock. Therefore, the buyer (purchaser) legally owns the goods while they are in transit and must include them in their inventory.

Question 2: Consignment goods

The correct answer is: Goods shipped by the owner to the consignee who sells the goods for the owner.

Reasoning: In a consignment arrangement, the owner (the consignor) sends goods to an agent (the consignee) to sell on their behalf. The consignor retains ownership of the goods until they are sold to a third party, meaning the goods remain in the consignor's inventory count, not the consignee's.

Accounting

Accounting

Cloie Jomariz P. Cudiamat

Answer

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