Which Goods in Transit Would Be Recorded in Inventory at Year

question 111

Multiple Choice

Which goods in transit would be recorded in inventory at year end?

• A)Goods purchased with terms F.O.B. destination point that were received after year end.
• B)Goods purchased with terms F.O.B. shipping point that were received after year end.
• C)Goods sold F.O.B. shipping point that were shipped two weeks before year end.
• D)Goods returned for credit, with terms F.O.B. destination point, received two days after year end.

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Definitions:

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Pregnancy Discrimination Act

A United States federal law that prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions in any aspect of employment.

Employee Retirement Income Security Act

A federal law that sets minimum standards for retirement and health benefit plans in private industry to protect individuals in these plans.

Economic Recovery Tax Act

A law enacted in the United States in 1981, aimed at lowering income taxes to spur economic growth.