When Substantially All Risks and Rewards of Ownership Have Passed

question 116

Multiple Choice

When substantially all risks and rewards of ownership have passed to the purchaser, the purchaser then recognizes an asset. For this recognition, which of the following statements is correct?

• A) The purchaser must have both legal title and possession of the goods.
• B) Legal title and possession do not always pass to the purchaser at the same time.
• C) In practice, recording inventory purchases often takes place when they leave the seller's place of business.
• D) The purchaser must have possession of goods before it has legal title.

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Definitions:

Wi-Fi

A technology that allows electronic devices to connect to a wireless LAN network, often used for accessing the internet.

WPA2 Encryption

A security protocol developed for Wi-Fi networks to provide a secure communication channel by encrypting data.

Wireless Router

A device that provides a Wi-Fi network, allowing wireless connection of computers and devices to the internet and each other.

Internet Communications

Internet communications refer to the exchange of information between individuals or entities over the Internet, including email, instant messaging, social media, online forums, and web conferencing.