Which of the following indicates that ownership of the purchased items changes as soon as the goods leave the seller's place of business lie. when shipping begins)? Select one: a. FOB Destination and FOB Shipping Point b. FOB Destination Point c. FOB Destination d. FOB Shipping Point

Which of the following indicates that ownership of the purchased items changes as soon as the goods leave the seller's place of business lie. when shipping begins)? Select one: a. FOB Destination and FOB Shipping Point b. FOB Destination Point c. FOB Destination d. FOB Shipping Point

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 7DQ

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Which of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for shipping. B. The buyer owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.
FOB shipping point means that transportation charges are paid by the seller.
Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory C. sales discounts D. accounts payable
Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.
The ownership of goods is transferred upon receipt of the goods by the buyer and the seller is the owner of the goods while in transit A. FOB Destination Point B. FOB Shipping Point C. Freight prepaid D. Freight collect
It is used to who is responsible for paying shipping and when the title of the goods passes from seller to buyer: This term will be applicable to a. Discount term b. Credit terms c. Cash term d. Shipping terms
When the transportation charges are paid by the seller, merchandise is shipped a. FOB destination b. FOB shipping c. FOB carrier d. Prepaid
Describe FOB shipping point and FOB destination. When does the buyer take ownership of the goods, and who typically pays the freight?
1/ Which of the following feature/s related to FOB shipping point under shipping terms, except? a. Title and control of the goods the moment the carrier signs the bill of lading with the buyer b. Buyer assumes risk of transportation and is entitled to route the shipment c. Buyer is responsible for filing claims for loss or damage d. Seller is responsible for filing claims for loss or damage.
If the buyer is to pay the transportation costs of delivering the merchandise, delivery terms are stated as O A. FOB shipping point O B. FOB destination C. FOB shipping destination O D. FOB buyer
When the seller advances the transportation costs and the terms of sale are FOB shipping point, the seller records the payment of the transportation costs by debiting a. Accounts receivable b. Sales c. Accounts payable d. Transportation in
It is used to show who is responsible for paying for shipping and when the title of the goods passes from seller to buyer in a merchandise business: a. Payment term b. Discount term c. Credit term d. Shipping term