At the Year-End Inventory Count,if Goods in Transit Are Shipped

question 206

Multiple Choice

At the year-end inventory count,if goods in transit are shipped FOB destination point,they should be included in the inventory count of

• A)the seller.
• B)the buyer.
• C)neither the buyer nor the seller.
• D)​both the buyer and the seller.

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Definitions:

Employer Sharing Profits

A business strategy where companies distribute a portion of their profits to their employees, often as a bonus or part of a benefit plan.

Partnership Creation

The process of forming a partnership, which is an agreement where two or more parties agree to share in the management, profits, and losses of a business.

Joint and Several Liability

A legal doctrine under which each party in a lawsuit can be held responsible for the full amount of damages regardless of their individual share of fault.

Unlimited Personal Liability

A legal obligation where individuals can be held fully responsible for the debts and obligations of a business, potentially affecting their personal assets.