If Goods Shipped FOB Destination Are in Transit at the End

question 47

Multiple Choice

If goods shipped FOB destination are in transit at the end of the year, they should be included in the inventory balance of the

• A) Seller
• B) Common carrier
• C) Buyer
• D) Bank

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Definitions:

Article 3 Negotiability

The section of the Uniform Commercial Code that governs the negotiation and enforcement of negotiable instruments, such as checks or promissory notes.

Payable

Referring to money that is owed by one party to another and should be paid according to terms specified in a contract or agreement.

Definite Time

A specific and set period or moment that is clearly defined or determined.

Negotiable Instruments

Financial documents, such as checks or promissory notes, that guarantee the payment of a specific amount of money either on demand or at a set time.