Who owns the goods in transit under FOB destination? * buyer O seller O either buyer or seller none
Q: f NetSolutions (the buyer) purchases merchandise from a wholesale company or vendor (the seller) and…
A: Solution: When goods are purchased on terms of FOB Shipping Point, Buyer of goods is responsible for…
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: Merchandise purchased fo Freight In... Freight Out.. Purchased returns..
A: Before calculating the inventoriable costs,for better understanding,firstly we need to understand…
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: How should a non vat seller treat input vat paid on the purchases from vat supplier of inventories…
A: The major purpose of adopting VAT is to reduce the effects of multiple taxes and the cascading…
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: Where should goods in transit that where recently purchased f.o.b. destination be included on the…
A: FOB destination: When the seller bears the freight charges for the delivery of merchandise from the…
Q: Describe FOB shipping point and FOB destination. When does the buyer take ownership of the goods,…
A: Transportation Costs: The costs of delivering the merchandise inventory from the manufacturer to the…
Q: 46. Which of the following shipping terms wherein the buyer shoulder the freight on shipment of…
A: Shipping terms in accounting define who will pay freight or shipping charges in which situations.…
Q: FOB destination of a Merchandise Business means: a. Seller is not responsible for the goods b. Buyer…
A: Whenever business sells goods to the customer, then there can be two type of terms. One is FOB…
Q: An item must possess two characteristics to be classified as inven tory by a merchandiser. What are…
A: The item must satisfy two characteristics to be classified as an inventory by a merchandiser. 1.…
Q: FOB shipping point
A: This is also called the FOB origin. Under FOB Shipping point the title of goods transfers to the…
Q: Entity A buys and sells artifacts. Each artifact is unique and not ordinarily interchangeable.…
A: Answer :- PAS 2 lays down various guidelines and rules with regards to inventories. For instance PAS…
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: Who is the owner of goods on consignment? (Please give full explanation and please avoid…
A: In the consignment basis goods are sent by the consignor to the consignee to sell the goods and in…
Q: Distinguish between FOB Shipping Point and FOB Destination. Identify the freight terms that will…
A: The letter FOB means Free On Board. Those goods that are placed free onboard the carrier by the…
Q: What is a consigned inventory? Goods that are shipped and title transfer to the consignee. Goods…
A: Consigned inventory refers to items that are held and sold on behalf of another company. Consigned…
Q: f goods are sold on terms FOB shipping point, the ________. A. seller normally pays the…
A: The invoice contains all the terms related to sale like FOB point, discount and due date of the…
Q: Who bears the freight when the terms of sale are: FOB shipping point…
A: Freight refers to the expense incurred by the entity for carrying goods from one place to another.
Q: The FOB term is used with an identified physical location to determine а. None of the options O b.…
A: FOB stands for Free on Board. This is a shipment term used to show that whether buyer or seller…
Q: Goods in transit are included in a purchaser's inventory: Multiple Choice O At any time during…
A: The sales invoice includes the shipping costs and details as FOB shipping, FOB destination.
Q: Which of the following feature/s related to FOB shipping point under shipping terms, except?
A: Solution- FOB shipping point – Notes responsibility of goods and title transfer from seller to buyer…
Q: .In consignment sales, what is the proper treatment of the consignment-related transportation cost…
A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…
Q: The term FOB shipping point means that the ownership of the goods is vested on the buyer upon…
A: Free on Board(FOB) means that the buyer will get ownership of the goods that they have purchased…
Q: Intercompany sale of inventory a.should be eliminated only if the inventories are sold to third…
A: Any form of transaction between two firms that are members of the same consolidated group, such as a…
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: Which of the below mentioned PPIs issued by an entity for facilitating the purchase of goods and…
A: PPI are prepaid financial instruments these have some value of money stored in them.
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: Explain the difference between freight in and freight out. Who pays for each? Who owns the goods…
A: Freight refers to the transportation cost paid on the goods. Freight in is the transportation cost…
Q: What does the term merchandise inventory mean? merchandise on hand, a fixed asset, merchandise…
A: Merchandise inventory means goods or inventory lying with the business either for the purpose of…
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: What is freight out, and how is it recorded by the seller?
A:
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: nd the cost of the goods is paid within the predetermined term? A) Payment with Acceptance Credit…
A: When goods are exported, the amount of payment is controversial as the amount of payment changes at…
Q: True or False 1. The seller nay prepay the transportation cost even though the terms are FOB…
A: FOB Shipping point refers to the transfer of risk in goods at the place of shipping point from…
Q: 1. e buyer is to pay the transportation costs of delivering merchandise, delivery terms are stated…
A: 1)Option A is correct FOB shipping point Means free on board at shipping point; buyer incurs all…
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: How does FOB Shipping Point differ from FOB Destination
A: FOB means Free on Board [ or Freight on Board]. FOB…
Q: True or false 1. Net sales is equal to sales revenue plus sales returns and minus sales discounts 2.…
A: The statement of cost of goods sold is prepared to record the cost of goods sold during the period.
Q: Entity A buys and sells artifacts. Each artifact is unique and not ordinarily interchangeable.…
A: PAS 2 lays down various guidelines and rules with regards to inventories. For instance PAS 2 states…
Q: In deciding whether to accept a special order, freight charges paid by the buyer are relevant. a)…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
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: Freight on Board (FOB) shipping point requires that the seller pays the shipping cost.. True or…
A: Shipping cost is the cost associated with goods when they are shipped to the buyer from the seller.…
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…
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- 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 freightTrue or False The term FOB shipping point means that the ownership of the goods is vested on the buyer upon receipt of the goods thereof.Explain the implications relating to ownership when goods are: In Transit (FOB) Shipping Point In Transit (FOB) Destination On Consignment
- Which freight is capitalizable or inventoriable cost by the consignor on the consigned goods under consignment sales? Freight from consignor to consignee Freight from consignee to consignor Freight from consignee to final consumers All of the aboveWho 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 sellerWhich 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.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 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 seller’s place of business.D. The point of transfer is when the goods arrive at the buyer’s place of business
- 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 collectIn deciding whether to accept a special order, freight charges paid by the buyer are relevant. a) True b) False1/ 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.