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) There is no revenue involved for goods sold on terms 'free on board'.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Revenue is recognized when the goods are handed over to the common carrier, as the risk and ownership transfer to the buyer at that point.

When Goods Are Sold 'Free on Board' (F