Which of the following items should be included in a company's inventory at the balance sheet 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 answer choices are correct.

Question

Quizplus · Accepted Answer

Goods in transit purchased FOB destination are not included in inventory until they arrive. Goods on consignment remain the property of the consignor, not the consignee. Goods sold and held for customer pickup are considered sold and should not be included in inventory.

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