Carriage and insurance paid to (CIP) is one of the terms of sale is used in place of which of the following? A. Free alongside ship (FAS) B. Cost, insurance, and freight (CIF) C. Cost and freight (CFR)D. Free on board (FOB)
Q: Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will…
A: The invoice is made by seller based on different terms including discount, and other terms as FOB…
Q: 7. Which of the following items appear on the same side of the trial balance? (CHOOSE A,B,C or D) A…
A: Introduction: Trial balance: All ledger accounts ending balances are posted in Trial balance to…
Q: The Trading Account shows the result of which of the following a Buying and selling of goods O…
A: Trading Account Consist of the following items 1. Opening Stock of Goods 2. Purchases Made 3.…
Q: When the seller advances the transportation costs and the terms of sale are FOB shipping point, the…
A: FOB shipping point - Under FOB Shipping term of sale the purchaser have to bear the cost of…
Q: Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will…
A: A shipment term which indicates the obligation of either buyer or seller with regard to the goods…
Q: Fairmont Company has shipped goods to Willowbook Recreation FOB shipping point.Fairmont will…
A: FOB Shipping point:
Q: FOB destination of a Merchandise Business means: a. Goods are placed free on board to the buyer's…
A: Free on broad (FOB) is a term indicating whether the seller or the buyer will bear the loss and…
Q: SLO-5.2. Using the term means that the buyer will pay the freight charges of the merchandise to the…
A: whenever the goods are purchased at the raw material for the production of goods are purchase there…
Q: ictions in proper form. Receivable; Prepaid Rent; Repair Supplies; Repair Equipment; Accounts…
A: Journal entries : The recording of journal entries is the first phase in the accounting cycle…
Q: Which of the following is not an example of an operating expense? Select one: a. Salaries Expense…
A: Option d is the correct answer.
Q: Which of the following is a temporary account? Multiple Choice Accounts Receivable Accumulated…
A: Balance sheet shows: Assets accounts Liabilities accounts Equity accounts Income statement shows:…
Q: calssify the following expenses between selling expenses and general and administrative expenses.…
A: Indirect expenses can be classified into three part: (1) Factory expenses (2) Office and…
Q: d as being earned evenly over the period of the policy.
A: Given: To explain which statement is true or false as,
Q: Before revenue can be recognized, the revenue recognition principle requires the _____. A. Product…
A: Revenue is the money earned by providing services or selling goods to customers. The Revenue…
Q: The Trading Account shows the result of which of the following O a. Buying and selling of goods…
A: The trading account contains details relating to incomes and expenses that are directly related to…
Q: Which of the following is reported as part of the operating expenses? Cost of sales…
A: The question is based on the concept of Business Accounting.
Q: The term "FOB" denotes * O free on board. freight on board. O free only (to) buyer. O freight charge…
A: The term "FOB" denotes Answer Option a: free on board Explanation: FOB stands for “free on board”…
Q: Question 1 All of the documents are involved in the purchase-to-pay (expenditure) process, except:…
A: Picking ticket is the list of details regarding the items that are to be shipped from the warehouse…
Q: Use the following information for the next three questions: Entity A, a manufacturing entity,…
A: PFRS 17 standard closely aligns with IFRS 17 which describes the insurance, reinsurance contracts in…
Q: hich of the following accounts is a contra account? Select one: a. Drawing b. Transportation In c.…
A: Solution: A contra account is related to a main account and used in a general ledger to reduce the…
Q: Which of the following describes the classification and normal balance of the unearned fees account?…
A: UNEARNED FEES : IT IS A UNEARNED REVENUE ( CASH RECEIVED IN ADVANCE FOR PROVIDING GOODS AND…
Q: ABC Company has shipped goods to one of its customers FOB destination. ABC Company will recognize…
A: >There are two kind of arrangement of purchase/sale transactions:#1: FOB Shipping point, and#2:…
Q: Determine if this shall result in recognition of liabilities 9. receipt of goods to be sold for the…
A: Consignment Goods: In the case of consigned goods, the party in actual possession of them do not own…
Q: Which of the following is not considered an operating expense
A: Operating expenses are those expenses incurred for normal day-to-day business activities and…
Q: The expense recognition principle requires: Multiple Choice that expenses should be split between…
A: The expenses recognition principle states that expenses should be recognized in the same accounting…
Q: The term "FOB" denotes * O free on board. O freight on board. free only (to) buyer. freight charge…
A: Option 1 Free on board, FOB stands for free on board
Q: Accrual method recognizes revenue at the point of sale and recognizes expenses when incurred. True…
A:
Q: The current assets of FDN Company's Statement of Financial Position would have the following: Trade…
A: Current assets: Current assets are all those assets that are expected to be sold or used as a result…
Q: he entry to record the sale of goods on account uses a perpetual system and comprises a
A: Here is the Answer:
Q: a servicemember receives reimbursement ➡r moving expenses, how much will the mount be reported to…
A: Moving expenses : These are the expenses incurred when the employees are allowed by the employer to…
Q: Who bears the freight when the terms of sale are (a) FOB shipping point, (b) FOB destination?
A: (a)If the sale is made with the terms FOB shipping point, the goods' ownership is transferred at the…
Q: А. Place an "X" in the blank for the following items which you believe should be included in the…
A: As per IFRS 16 property plant and equipment Cost of piece of equipment consists of Its purchase…
Q: The following items are recorded in the general journal, except Select one: A. Purchase of…
A: >Journal entries are the first accounting treatment that is given to a transaction, where in the…
Q: The buyer should be responsible for the freight (legally) but the seller paid for it A. FOB shipping…
A: FOB destination stands for freight on board, is an incoterm which is used when there is trade…
Q: When a payment is made to a supplier for goods previously purchased on account, the debit is to an…
A: Solution:- Discussion of clarification regarding payment is made to a supplier for goods previously…
Q: FOB SHIPPING POINT, who is the owner of goods in transit
A: The invoice made at the time of sale includes the invoice price, payment terms, discount terms, etc.…
Q: Expired cost shown in: O a. Balance Sheet as a liability O b. Balance Sheet as an asset O c. Profit…
A: Net profit means the difference between the income and expenses. Financial statement means the…
Q: The ownership of goods is transferred upon receipt of the goods by the buyer and the seller is the…
A: The invoice is prepared at the time of sale of goods on credit. The invoice details about the…
Q: Identify the natural balance of each of the following accounts (DR = Debit, CR = Credit) - Inventory…
A: As per the Golden rules of accounting: • For Real Accounts, the rule follows as: debit what…
Q: According to U.S. GAAP, when should revenue be recognized?a. When cash is received from the…
A: Revenue: It refers to money earned by the business from selling its goods and services to the…
Q: Return inward appearing in trial balance is deducted from Select one: a. Asset O b. Purchases c.…
A: Introduction: Trial balance: After posting all the balances to ledger accounts trial balance is…
Q: When a company exchanges machinery and receives a trade-in allowance greater than the book value,…
A: Solution: When a company exchanges machinery and receives a trade-in allowance greater than the book…
Q: The FOB term is used with an identified physical location to determine a. None of the options b. The…
A: Solution: The FOB term is used with an identified physical location to determine "Both the…
Q: The authority to accept incoming goods in receiving should be based on a(n)(1) vendor’s invoice. (3)…
A: Delivery is an act of transferring goods, services, commodities, securities or cash from one place…
Q: When the transportation charges are paid by the seller, merchandise is shipped a. FOB destination…
A: Transportation charges are charges that are being paid for freight charges from the point of seller…
Q: Entity A, a manufacturing entity, obtains insurance against product liability from Entity B, an…
A: SOLUTION- INSURANCE EXPENSE IS THE AMOUNT THAT A COMPANY PAYS TO GET AN INSURANCE CONTRACT AND ANY…
Q: If the buyer is to pay the transportation costs of delivering the merchandise, delivery terms are…
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…
Q: Who is responsible for the freight cost when the terms are FOB destination? Please explain with full…
A: FOB: FOB means "Free on Board", also known as "Freight on Board". It is important to decide who is…
Carriage and insurance paid to (CIP) is one of the terms of sale is used in place of which of the following?
A. Free alongside ship (FAS)
B. Cost, insurance, and freight (CIF)
C. Cost and freight (CFR)D. Free on board (FOB)
Step by step
Solved in 3 steps
- Where should goods in transit that where recently purchased f.o.b. destination be included on the balance sheet? A) Accounts payable. B) Inventory C) Equipment D) Not the balance sheet1/ 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.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
- 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 collectWhich of the following statements is correct? Group of answer choices A)Revenue is recognized at the time of shipment when goods are shipped FOB destination. B)Sales returns and allowances are reported as operating expenses on an income statement. C)Revenue is recorded when title and risks of ownership transfer to the buyer. D)Sales discounts are reported as operating expenses on an income statement.If the seller assumes the entire cost of transportation, without any reimbursement from the buyer, the freight terms are considered ______________. a. FOB shipping point b. FOB destination c. Freight in d. Freight out e. FOB freight
- 7. Which of the following items appear on the same side of the trial balance? (CHOOSE A,B,C or D) A Drawings and accruals B Freight out and prepayments C Freight in and rental income D Opening inventory and purchase returns Answer questions and explain why did you pick this answerThe buyer should be responsible for the freight (legally) but the seller paid for it A. FOB shipping point, freight prepaid B. FOB shipping point, freight collect C. FOB destination, freight prepaid D. FOB destination, freight collectWhich of the following needs an adjustment to the accounts receivable account of AB Company? a. a freight cost paid by the buyer for goods shipped FOB shipping point b. freight cost prepaid by the seller for good shipped FOB destination c. freight cost prepaid by the buyer for goods shipped FOB shipping point d. freight cost prepaid by the seller for goods shipped FOB shipping point
- When the transportation charges are paid by the seller, merchandise is shipped a. FOB destination b. FOB shipping c. FOB carrier d. PrepaidWhere, if at all, should the following items be classifiedon a balance sheet?(a) Goods out on approval to customers.(b) Goods in transit that were recently purchased f.o.b.destination.(c) Land held by a realty firm for sale.(d) Raw materials.(e) Goods received on consignment.(f) Manufacturing supplies.Which of the following is not an example of an operating expense? Select one: a. Salaries Expense b. Insurance Expense c. Rent Expense d. Cost of Goods Sold
