A company purchases goods with FOB destination terms. The goods are in transit on the last day of the accounting period. Should these goods be included in the company's inventory?

• A. No, because the ownership has not yet transferred to the company.
• B. Yes, because the company has paid for the goods.
• C. No, because the goods are still with the supplier.
• D. Yes, because the goods are in the company's possession.

Answer: (A)