Describe the differences between FOB shipping point and FOB destination.
What will be an ideal response?
If goods are shipped FOB shipping point, ownership transfers to the buyer when the goods depart the seller's place of business, and the seller records revenue at that time. The buyer is then responsible for paying shipping costs and bearing the risk of damage or loss while goods are in transit. If goods are shipped FOB destination, ownership of the goods transfers to the buyer when the goods arrive at the buyer's place of business. The seller is responsible for paying shipping costs and bears the risk of damage or loss in transit. The seller does not record revenue until the goods arrive at the destination because the transaction is not complete before that point.
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An employer may use a _____________, allowing the employee to determine whether or not to maintain employment.
A. paid suspension B. reprimand C. probation time D. penalty time E. demotion
The net present value capital budgeting method considers all estimated cash flows for the project's expected life.
Answer the following statement true (T) or false (F)
If a holder presents a note for payment to the maker, which of the following warranties is/are given?
a. All indorsements are genuine. b. All signatures are genuine. c. The holder has no knowledge that any indorsements are forged. d. The holder is entitled to enforce the note or is authorized to obtain payment on behalf of the person entitled to enforce the note. e. All of these.
Yelena, the CEO of Andron Inc., reports to the board of directors appointed by the shareholders of Andron. Based on shareholder suggestions, the board ties Yelena's compensation to the performance of Andron. Due to this pressure, Yelena begins devoting extra time to projects and undertakes other activities to ensure that she has job security and that she receives adequate compensation. The reasons why the board ties Yelena's compensation to firm performance is to overcome
A. inside director-outside director conflict. B. principal-agent problem. C. shareholder capitalism scenario. D. fiduciary responsibility oversight.