Which Goods in Transit Would Be Recorded in Inventory at Year

question 123

Multiple Choice

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

• A)Goods sold with terms F.O.B. destination point that were shipped at year end.
• B)Goods sold with terms F.O.B. shipping point that were shipped before year end.
• C)Goods purchased F.O.B. destination that have not been received by year-end.
• D)Goods returned for credit before year-end, with terms F.O.B. shipping point.

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Definitions:

Market Price

The current financial demand for buying or selling a service or asset.

Debt Issue

Refers to a financial obligation or securities, such as bonds, that are issued by a company in order to raise funds.

Capital Structures

Refers to the way a corporation finances its assets through a combination of debt, equity, or hybrid securities.

Equity Plan

A compensation strategy companies use to provide their employees with ownership interest in the company, often through stock options or shares.