When goods are sold 'free on board' (f.o.b.)shipping point,the revenue should be recognised when:
A) the goods are completed and ready to be transported.
B) the goods are received by the purchaser.
C) the goods are received by the common carrier.
D) None of the given answers are correct, there is no revenue involved for goods sold on terms 'free on board'.

Question

Quizplus · Accepted Answer

Revenue should be recognised when the goods are received by the common carrier, as this is the point at which ownership and the risks and rewards of ownership typically transfer to the buyer under FOB shipping point terms.

When Goods Are Sold 'Free on Board' (F