Goods in Transit Are Included in Inventory

question 62

Multiple Choice

Goods in transit are included in inventory

• A) At any time in transit
• B) When the purchaser is responsible for paying freight charges
• C) When the supplier pays the freight charges
• D) When ownership has passed to the purchaser
• E) When the purchaser is responsible for paying freight charges and when ownership has passed to the purchaser

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Definitions:

Exact Simple Interest

Refers to interest calculated precisely on the principal amount of a loan or investment, without compounding, over a specific time period.

365-Day Year

A method of interest calculation that uses a full calendar year to determine the amount due.

Loan Period

The duration of time from the initiation to the full repayment of a loan.

Exact Simple Interest

A method of calculating interest that uses a base of 365 days per year, ensuring accuracy based on actual calendar days.