Which of the following should be included in the physical inventory of a company?
A) Goods held on consignment from another company.
B) Goods in transit to another company shipped FOB shipping point.
C) Goods in transit from another company shipped FOB shipping point.
D) Both b and c above.

Question

Quizplus · Accepted Answer

Goods in transit from another company shipped FOB shipping point should be included in the physical inventory of a company because the ownership of the goods has already been transferred to the company and they are responsible for them. Goods held on consignment from another company and goods in transit to another company shipped FOB shipping point do not belong to the company and should not be included in their physical inventory.

Which of the Following Should Be Included in the Physical