Which of the following items should be included in a company's inventory at the statement of financial position date?
A) Goods in transit which were purchased F.o.b. destination.
B) Goods received from another company for sale on consignment.
C) Goods sold to a customer which are being held for the customer to call for at his or her convenience.
D) None of these are correct.

Question

Quizplus · Accepted Answer

None of these items should be included in the company's inventory. Goods purchased F.o.b. destination are not included until they reach the destination. Consigned goods are not owned by the company, and goods sold and held for a customer are no longer part of the company's inventory.

Which of the Following Items Should Be Included in a Company's