When an Acquisition Is on an FOB Origin Basis, the Inventory

question 55

Multiple Choice

When an acquisition is on an FOB 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 on or before the balance sheet date.
• C) both shipped and received prior to the balance sheet date.
• D) paid for in advance.

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Definitions:

Seminal Vesicle

The seminal vesicles are a pair of glands in males that secrete a significant portion of the fluid that becomes semen, providing nutrients for sperm and enhancing their motility.

Uterus

A female reproductive organ where the development of the fetus takes place during pregnancy.

Yolk Sac

An extra-embryonic membrane that provides nutrients to the early embryo; it is a critical structure in the development of many vertebrates.

Chorion

The outermost fetal membrane in many vertebrates, including humans, contributing to the formation of the placenta.