Goods in transit are included in a purchaser's inventory:
A) At any time during transit.
B) When the purchaser is responsible for paying freight charges.
C) When the supplier is responsible for freight charges.
D) If the goods are shipped FOB destination.
E) After the half-way point between the buyer and seller.

Question

Quizplus · Accepted Answer

Goods in transit are included in a purchaser's inventory when the purchaser is responsible for paying freight charges, indicating that the purchaser has assumed ownership and risk of loss during transit. This is typically associated with FOB (Free On Board) shipping point terms.

Goods in Transit Are Included in a Purchaser's Inventory