Assume a large shipment of uninsured merchandise to your company is destroyed when the delivery truck has an accident and burns. Would you want the terms to be FOB shipping point or FOB destination?View Solution: Assume a large shipment of uninsured merchandise to your company

Assume a large shipment of uninsured merchandise to your company is destroyed when the delivery truck has an accident and burns. Would you want the terms to be FOB shipping point or FOB destination?View Solution: Assume a large shipment of uninsured merchandise to your company

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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Assume a large shipment of uninsured merchandise to your company is destroyed when the delivery truck has an accident and burns. Would you want the terms to be FOB shipping point or FOB destination?View Solution:
Assume a large shipment of uninsured merchandise to your company

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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.
What type of return privileges are being used by buyers who accept merchandise from sellers but only pay for it if it sells? • On specification On cancellation ⚫ On memorandum • On consignment
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 NetSolutions (the buyer) purchases merchandise from a wholesale company or vendor (the seller) and the NetSolutions pays the transportation costs (freight/shipping terms--FOB Shipping), who owns the merchandise while the merchandise is in transit? Group of answer choices NetSolutions the vendor the trucking company No one (neither the buyer or the seller) until the merchandise is delivered.
Which one of the following statements best describes the purpose of a goods despatched note? A It is issued by a customer returning faulty goods to their supplier. It is issued by a customer to their supplier and specifies the quantity and type of goods they require to be despatched. В It is issued by a supplier to their customer and specifies the quantity and type of goods delivered to that customer. C It is issued by a supplier to their customer and specifies what goods will be provided to them at a specified future date.
fill in the blank quickly thanks 2 Under documents against acceptance, after acceptance, the buyer gains possession of the goods before _____and is able to dispose of the goods as he wishes.
Which one of the following statements is false? a. FOB shipping point means the buyer has legal title to the goods while they are in-transit b. FOB shipping point means the buyer has legal title to the goods when they are shipped c. FOB destination means the seller has legal title to the goods until they reach the buyer's place business d. FOB shipping means the buyer acquires legal title to the goods when they reachg the buyer's place of business
Which of the following is not an external failure cost? a. correcting invoice errors b. rework c. warranty work d. processing returned merchandise
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.
The store that the company should consider selling is (A store that contributes a loss to the company as a whole)? a• Store 1 b• Store 1 and 3 c• Store 2 d• None of the above
Why is it important to understand shipping terms such as FOB destination or FOB shipping point? Why is it important to understand shipping terms such as FOB destination or FOB shipping point? Shipping terms determine when the customer must pay cash to the seller Shipping terms determine whether any part of the sale is refundable to the customer Shipping terms determine the amount that the seller must add to the bad debt allowance account Shipping terms determine who owns the inventory at a given moment
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