Question

Which of the following is not an indicator that control of a good has passed from the seller to the buyer?

Multiple Choice
a. Buyer has an unconditional obligation to pay.
b. Buyer has legal title.
c. Buyer has scheduled delivery.
d. Buyer has assumed the risk and rewards of ownership.

Answer 1

In a sale transaction, indicators of the transfer of control from the seller to the buyer include unconditional obligation to pay, legal title, and assumption of risk and rewards of ownership. Scheduled delivery does not indicate a transfer of control.

Step-by-step explanation:

In the context of a sale transaction, there are several indicators that control of a good has passed from the seller to the buyer. These include:

1. The buyer has an unconditional obligation to pay.
2. The buyer has legal title to the good.
3. The buyer has assumed the risk and rewards of ownership.

Therefore, the correct answer is c. Buyer has scheduled delivery, as this does not indicate a transfer of control.