The factor which determines whether goods in transit should be included in a physical count of inventory is
A) physical possession.
B) legal title.
C) management's judgment.
D) whether or not the purchase price has been paid.

Question

Quizplus · Accepted Answer

Legal title is the determining factor for whether goods in transit should be included in a physical count of inventory. Legal title refers to ownership of the goods, and it determines which party is responsible for the goods in transit. If legal title has passed to the buyer, the goods should be included in the physical count of inventory, even if they have not yet been physically received. If legal title has not yet passed to the buyer, the goods should not be included in the physical count of inventory.

The Factor Which Determines Whether Goods in Transit Should Be