The FOB term is used with an identified physical location to determine a. None of the options b. The point at which title for the shipment passes from Seller to Buyer c. Both the responsibility and basis for payment of freight charges and the point at which title for the shipment passes from Seller to Buyer d. The responsibility and basis for payment of freight charges

The FOB term is used with an identified physical location to determine a. None of the options b. The point at which title for the shipment passes from Seller to Buyer c. Both the responsibility and basis for payment of freight charges and the point at which title for the shipment passes from Seller to Buyer d. The responsibility and basis for payment of freight charges

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 8QY: If the seller assumes the entire cost of transportation, without any reimbursement from the buyer,...

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Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping. B. The seller 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.
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.
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.
The 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 collect
In deciding whether to accept a special order, freight charges paid by the buyer are relevant. a) True b) False
21.This is a situation where the seller actually paid the freight charges but is not legally responsible for the same. a. FOB destination, freight prepaid b. FOB destination, freight collect c. FOB shipping point, freight prepaid d. FOB shipping point, freight collected
Who is responsible for the freight cost when the terms are FOB destination? Please explain with full explanation. a. the seller b. the buyer c. the customer d. either the buyer or the seller
Requirement a. What are the accounting requirements for a correct sales cutoff? A. A shipment should be recorded as a sale when the risks of ownership transfer to the buyer and collectability is reasonably assured. B. A shipment should be recorded as a sale when the merchandise is shipped. C. A shipment should be recorded as a sale when the payment for the merchandise has beeb received by the seller. D. A shipment should be recorded as a sale when the merchandise is received by the purchaser.
Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will result in a debit to Inventory by the buyer and a debit to Freight-Out by the seller.
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
Under PFRS 15, what is the specific point in time when the consignor satisfies is performance obligation under consignment contract? a. upon sale of consigned goods by consignee to final consumers b. upon signing of contract of consignment by consignor and consignee c. upon remittance of cash by consignee to consignor d. upon delivery of consigned goods by consignor to consignee
Distinguish between FOB Shipping Point and FOB Destination. Identify the freight terms that will result in a debit to Inventory and which one will result in a debit to Freight expenses by the seller.