A liability for a long-term purchase contract should generally be recognized when
A)the contract is signed.
B)the goods are shipped.
C)the goods are received.
D)the goods are sold to match the cost.

Question

Quizplus · Accepted Answer

A liability for a long-term purchase contract is generally recognized when the goods are received, as this is when the obligation to pay arises and the company takes ownership of the goods.

A Liability for a Long-Term Purchase Contract Should Generally Be