Question
Which of the following is true? a. One reason the FOB designation is important is that it often indicates at which point title transfers from
Which of the following is true?
| a. | One reason the FOB designation is important is that it often indicates at which point title transfers from the seller to the buyer; that is, it is often an indication of ownership of goods in transit. | |
| b. | A company purchases inventory. The inventory leaves the sellers warehouse on November 10 with the designation FOB destination and arrives at the buyers store on November 18. The inventory belongs to the buyer on November 10. | |
| c. | Inventory is shipped FOB shipping point on December 26, X8 and arrives at the buyers warehouse on January 2, X9. If the buyers accountant includes the cost of the inventory in ending inventory for X8, the assets on the December 31 balance sheet will be overstated. | |
| d. | FOB destination indicates that the inventory belongs to the buyer as soon as it leaves the seller's warehouse. | |
| e. | none of the above |
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