When an Acquisition Is on an FOB (Freight on Board)origin

question 17

Multiple Choice

When an acquisition is on an FOB (freight on board) origin basis,the inventory and related accounts payable must be recorded in the current period if the goods were

• A)received prior to the balance sheet date.
• B)shipped prior to the balance sheet date.
• C)both shipped and received prior to the balance sheet date.
• D)paid for.

---

Definitions:

Internet

A global system of interconnected computer networks that use the Internet protocol suite to communicate between networks and devices, facilitating information sharing and communication.

Offshoring

The relocation of a business process or operation from one country to another, typically to leverage lower labor costs.

Globalization

Globalization is the process of increased interconnectedness and interdependence among countries, mainly due to trade, investment, and technology.

Sustainability

Sustainability involves making decisions and taking action that are in the interests of protecting the natural world, with particular emphasis on preserving the capability of the environment to support human life and wellbeing.