Goods in Transit Should Be Included in the Inventory of The

question 3

Multiple Choice

Goods in transit should be included in the inventory of the:

• A) buyer when the terms are FOB destination.
• B) buyer when the terms are FOB shipping point.
• C) transportation company when the terms are FOB destination.
• D) seller when the terms are FOB shipping point.

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Definitions:

Bretton Woods System

An international monetary system established in 1944 that set up fixed exchange rates anchored by the U.S. dollar, which was convertible to gold.

Pegged Exchange Rates

An exchange rate regime where a country's currency value is fixed or tied to another currency or a basket of currencies.

U.S. Dollars

The official currency of the United States, widely used as a benchmark and reserve currency around the world.

Balance of Payments

A statement that summarizes an economy's transactions with the rest of the world for a specific time period.