Goods in transit, shipped FOB shipping point, are included in the buyer's statement of financial position at the time of delivery to the common carrier.

Question

Quizplus · Accepted Answer

Goods in transit are considered a part of the buyer's inventory because the risk of loss or damage is transferred to the buyer at the point of shipment. Therefore, they should be included in the buyer's statement of financial position at the time of delivery to the common carrier.

Goods in Transit, Shipped FOB Shipping Point, Are Included in the Buyer's