To which of the following tests is the determination of FOB destination and FOB shipping point critical?
A)Sales cutoff test
B)Details of balances
C)Vouch revenue transactions
D)Trace revenue transactions

Question

Quizplus · Accepted Answer

The determination of FOB destination and FOB shipping point is critical to the sales cutoff test. This is because it helps in accurately determining when the ownership of goods passes from the seller to the buyer, which in turn affects the recognition of revenue and the recording of inventory.

To Which of the Following Tests Is the Determination of FOB