Which of the Following Is True Regarding Identification of the Goods

question 55

Multiple Choice

Which of the following is true regarding identification of the goods under Article 2?

• A) Only the buyer can identify the goods.
• B) Identification of existing goods gives the buyer a special property interest.
• C) Fungible goods are identified when the seller separates the contracted units from the whole.
• D) All of these are correct.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with predetermined dividend payments.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported.

Income Taxes Payable

This liability account shows the amount of income taxes owed to the government but not yet paid by a company.