Which One of the Following Statements Is True

Multiple Choice

Which one of the following statements is true?

A) Until goods are sold by the consignee, the consignor includes the goods in his/her inventory at cost less handling and shipping costs incurred in the delivery to the consignee.
B) When goods are sold on an installment plan, the seller retains title and continues to include them on his/her balance sheet until full payment has been received.
C) Title to goods may not pass before shipment occurs.
D) In accounting for inventory, economic substance should take precedence over legal form.