The factor which determines whether or not goods should be included in a physical count of inventory is
A) physical possession.
B) legal title.
C) management's judgement.
D) whether or not the purchase price has been paid.

Question

Quizplus · Accepted Answer

Legal title determines whether or not goods should be included in a physical count of inventory because it indicates the ownership of the goods. If the legal title of the goods has passed to the entity, those goods should be included in the entity's inventory count, regardless of their physical location.

The Factor Which Determines Whether or Not Goods Should Be