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 seller’s place of business.D. The point of transfer is when the goods arrive at the buyer’s place of business

Q: Which of the following indicates that ownership of the purchased items changes as soon as the goods…

A: FOB point is the term which is used to determine when the ownership of the goods changes hand. FOB…

Q: What happens when merchandise is delivered FOB shipping point? Multiple Choice O O O O The buyer…

A: Ans. The buyer pays the freight cost

Q: Internet companies that simply act as agent or broker for the transfer of goods can record revenue…

A: Internet companies that simply act as agent or broker for the transfer of goods , act in the…

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: Which of the following statements regarding freight costs is true? Oa. FOB destination means that…

A: The inventory is recorded as current assets in the balance sheet . The inventory is recorded…

Q: A ____ will cause Cost of Goods Sold to decrease. A. Debit  B. Credit

A: Cost of Goods Sold means Cost involved in making of goods or providing services. Direct Material,…

Q: If the sale includes the seller paying the freight costs and assuming the responsibility for…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: Freight costs paid by a seller on merchandise sold to customers will cause an increase to a…

A: In operating expenses for the seller. Explanation:In operating expenses for the seller.When a seller…

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: Why do you add transportation in and do not deduct delivery expense when determining the cost of…

A: For a buyer, the cost of merchandise purchased is considered as a net cost incurred to buy the…

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: Why should one not use a rent-to-own for mer

A: Rent - to- own: Rent-to-own (RTO) stores sell things like articles of furniture and appliances to…

Q: In large companies, the independent internal verification procedure is often assigned to O internal…

A: Professionals that work for an organisation to analyse and appraise its overall governance, risk…

Q: For sellers of goods, the revenue recognition principle generally requires that revenues be recorded…

A: The objective of the question is to understand when the revenue recognition principle allows sellers…

Q: None

A: Ownership of goods has significant implications in various commercial transactions, particularly…

Q: What is Target’s policy with respect to accounting for merchandise returns?

A: Financial Statements: Financial statements are a group or reports that present the financial…

Q: One such issue is the Sale with Right of Return. Discuss how do you recognize revenue when the…

A: Revenue Recognition: Revenue recognition is a bookkeeping rule that states that income should be…

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: Who owns the goods in transit under FOB destination? * buyer O seller O either buyer or seller none

A: In case of goods in transit under FOB  means  The seller will