Which One of the Following Is Not an Indicator of the Transfer

question 36

Multiple Choice

Which one of the following is not an indicator of the transfer of control to the buyer?

• A) Seller has present right to payment for the asset.
• B) Seller has legal title to the asset.
• C) Seller has transferred physical possession of property.
• D) Customer has accepted the asset.

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Definitions:

Materials Ledger Cards

Records used to track the quantities and costs of materials on hand in inventory through receipts, issuances, and balances.

Perpetual Records

Inventory management records that are continuously updated to reflect sales, purchases, and inventory levels in real time.

Issued For Use

Refers to materials or goods that have been distributed for use in production or operations.

Indirect Materials

Indirect materials are supplies used in the production process but not directly traceable to individual goods or services.