At the Year-End Inventory Count, If Goods in Transit Are

question 104

Multiple Choice

At the year-end inventory count, if goods in transit are shipped FOB destination, they should be included in the inventory count of

• A)the seller.
• B)the buyer.
• C)the shipping company.
• D)neither the buyer nor the seller.

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Definitions:

Creditors

Individuals or entities that have provided goods, services, or loans to another entity, to which the latter is obliged to repay.

Purchases

Transactions involving the acquisition of goods or services in exchange for payment, contributing to a business's inventory or operational needs.

Trial Balance

A financial worksheet that gathers the balances from all accounts into columns of debits and credits, verifying the mathematical accuracy of a company's accounting records.

Ledger

Definition: A book or database in which financial transactions are summarized and categorized to show account balances.