Goods in transit are included in a purchaser's inventory:
A)At any time during transit.
B)When the goods are shipped FOB shipping point.
C)When the supplier is responsible for freight charges.
D)If the goods are shipped FOB destination.
E)After the half-way point between the buyer and seller.

Question

Quizplus · Accepted Answer

Goods in transit are included in a purchaser's inventory when they are shipped FOB (Free On Board) shipping point because the title to the goods passes to the buyer at the point of shipment, making the buyer responsible for the goods during transit.

Goods in Transit Are Included in a Purchaser's Inventory