When an Acquisition Is on an FOB Origin Basis, the Inventory

question 90

Multiple Choice

When an acquisition is on an FOB origin basis, the inventory and related accounts payable must be recorded in the current period if the goods were:

• A) received prior to the balance sheet date.
• B) shipped prior to the balance sheet date.
• C) both shipped and received prior to the balance sheet date.
• D) paid for in advance.