Freight on Board (FOB) shipping point requires that the seller pays the shipping cost.. True or False
Q: When merchandise was shipped by the consignor to the consignee and freight on shipment was paid by…
A: When goods are sold all the costs incurred to bring the goods to the desirable location will also be…
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: 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: 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: What is difference between accounting for a long-term contract and accounting for a more normal sale…
A: Sale Revenue is recognized when the goods are actually dispatched and delivered to the customer. In…
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: When goods are shipped FOB destination and the buyer pays the freight charges, the buyer A.…
A: FOB destination means freight on board that means that the seller is responsible for the freight…
Q: Which one of the following statements is false? a. FOB shipping point means the buyer has legal…
A: FOB shipping point means title of the goods is transferred when goods are placed at the shipping…
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: FOB shipping point
A: This is also called the FOB origin. Under FOB Shipping point the title of goods transfers to the…
Q: Which of the following items is not a product cost? Multiple Choice Freight cost on goods delivered…
A: Cost included in manufacturing a product are called product costs. Cost of goods sold comprises of…
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: Which two accounts are used to recognize shipping charges for a buyer, assuming the buyerpurchases…
A: The term "free on board" (FOB) relates to whether the vendor or customer is liable for damaged or…
Q: Discuss the treatment of freight-in, purchase returns, purchase discounts, normal spoilage, sales…
A: Retail inventory method: It takes into account all the retail amounts that is, the current selling…
Q: Which of the following statements is NOT true
A: Answer: Option c.
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: For purposes of computing the MCIT, which will not form part of cost of goods sold for traders:…
A: MCIT is minimum corporate income tax, which is being payable by the domestic companies. The rate…
Q: If a customer agrees to retain merchandise that is defective because the seller is willing to reduce…
A: A discount is a reduction in list price of a product as a normal business practice or due to early…
Q: n records pur
A: Invoice-: An invoice is simply a time-stamped marketable paper that itemizes and documents an…
Q: In deciding whether to accept a special order, freight charges paid by the seller are relevant. True…
A: Special orders are those that are given for the goods not generally available in the market and…
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: 1. Net purchases equal the invoice amount and? a. plus freight-in, plus discounts b. less purchase…
A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…
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: evenue is recognized for sold consignment goods when a. The consignee receives the goods b. When…
A: Solution: Revenue is recognized for sold consignment goods when "The goods are sold by the consignee…
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: If NetSolutions purchases merchandise inventory and pays the shipping or freight costs, the shipping…
A: FOB (Free on Board) destination is a type of FOB contracts under which ownership of the merchandise…
Q: 7.Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods…
A: Using perpetual inventory system, the expenses incurred on purchase is debited to inventory account.…
Q: This is a situation where the seller actually paid the freight charges but is not legally…
A: FOB Destination, Freight Collect: If the products are sent FOB destination, the customer is…
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: 1. Credit Terms a. The cost of the merchandise inventory that the business has sold to customers. 2.…
A: FOB destination point vs FOB shipping point : In FOB destination point, the seller transfers the…
Q: d. Early payment discount Who should pay the freight costs when the terms are FOB shipping pointa…
A: 9) option B is correct buyer When it comes to the FOB shipping point option, the seller assumes the…
Q: When goods are shipped FOB destination and the seller pays the freight charges, the buyer A.…
A: Transportation expense is a type of travel expense that refers specifically to the cost of…
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: When goods are shipped FOB destination and the seller pays the freight charges, the buyer a.does…
A: Inventory: It refers to the items held by an organization which were in various forms like raw…
Q: orp. owin Cost of purchases based on suppliers' invoic Trade discounts on purchases already deduc…
A: Solution: Before calculating the total cost of net purchases,For better understanding firstly we…
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: 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: 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: 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: 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: d gross sales The term "inventory" indicates materials in the process of production or held for…
A:
Q: The amount recorded for net cost of purchases includes all of the following EXCEPT: Purchase…
A: Purchase refers to a transaction that results in an acquisition of an item. This transaction…
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…
Freight on Board (FOB) shipping point requires that the seller pays the shipping cost.. True or False
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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 freightWhich 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.
- If the sale includes the seller paying the freight costs and assuming the responsibility for merchandise until it is received by the buyer, the freight terms are said to be: A FOB shipping point. В FOB destination. (c) sales discount. D) trade discount.SLO-5.2. Using the term means that the buyer will pay the freight charges of the merchandise to the buyer's place of business. OFOB Shipping Point OFOB Destination OTrade Discount OQuantity DiscountWhen the transportation charges are paid by the seller, merchandise is shipped a. FOB destination b. FOB shipping c. FOB carrier d. Prepaid
- If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as Da. FOB destination Ob. FOB shipping point Oc. FOB n/30 Od. FOB buyerWhich of the following statements regarding freight costs is true? a. FOB destination means that transportation charges are paid by the buyer. Ob. Under FOB shipping point, the buyer owns the inventory as soon as it is shipped and should count it in inventory. c. When the terms are FOB shipping point, the freight-in account is not used in recording the purchase. Od. Under FOB destination, the buyer owns the inventory as soon as it is shipped and should count it in inventory.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
- 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 buyerWhat happens when merchandise is delivered FOB shipping point? Multiple Choice O O The seller records transportation-out expense. O The buyer records transportation cost as an expense. O The buyer pays the freight cost. The seller pays the freight cost.Describe FOB shipping point and FOB destination. When does the buyer take ownership of the goods, and who typically pays the freight?
