Control of an asset normally coincides with
A) transfer of possession to the buyer.
B) transfer of legal title to the buyer.
C) transfer of both possession and legal title to the buyer.
D) the receipt of payment from the buyer.

Question

Quizplus · Accepted Answer

Control of an asset normally coincides with transfer of both possession and legal title to the buyer. This means that the buyer has physical possession of the asset and legal ownership rights to it. The transfer of possession alone (option A) does not necessarily mean that the buyer has legal ownership rights, and the transfer of legal title alone (option B) does not necessarily mean that the buyer has physical possession of the asset. Receipt of payment (option D) is important, but it does not necessarily determine control of the asset.

Control of an Asset Normally Coincides with