Goods in transit should be included in the inventory of the buyer when the
A) public carrier accepts the goods from the seller.
B) goods reach the buyer.
C) terms of sale are FOB destination.
D) terms of sale are FOB shipping point.

Question

Quizplus · Accepted Answer

Goods in transit should be included in the inventory of the buyer when the terms of sale are FOB (Free On Board) shipping point, as ownership of the goods transfers to the buyer when the goods leave the seller's premises.

Goods in Transit Should Be Included in the Inventory of the Buyer