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:

Direct Write-Off Method

An accounting practice where specific bad debts are written off against income at the time they are deemed to be uncollectable.

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) are a set of rules, standards, and procedures established for accounting and financial reporting, aimed at ensuring consistency and transparency.

Factoring

A financial transaction in which a business sells its accounts receivable (invoices) to a third party (factor) at a discount, to obtain immediate cash.

Direct Write-Off Method

An accounting method where bad debts are written off as an expense only when they are deemed to be uncollectable.