Which of the Following Is True Regarding Identification of the Goods

question 19

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 right.
• C)Identification of fungible goods occurs when the seller separates the contracted units from the whole.
• D)All of the above are correct.

---

Definitions:

Lower-Of-Cost-Or-Market

An accounting principle that values inventory at the lesser of its historical cost or the market replacement cost, ensuring inventory is not overstated.

Inventory Valuation

The method used to calculate the cost associated with an inventory, which can impact the cost of goods sold and net income.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's actual financial performance over a specific period.

Rapidly Rising Costs

A situation where the expenses associated with producing goods or services increase at a faster pace than usual, affecting profitability.