When the Risk of Loss Passes Is Generally Determined by

question 12

Multiple Choice

When the risk of loss passes is generally determined by

• A)the passage of title to identified goods.
• B)the acquisition of an insurable interest in specific goods.
• C)the expression of a buyer or lessee's interest in obtaining certain goods.
• D)the terms of a contract for a sale or lease of goods.

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Definitions:

Sales Department

The division of a business that is responsible for selling products or services and generating revenue.

Expense Allocation

The process of distributing or assigning costs to different departments, projects, or cost centers within an organization.

Profit Margin

A financial metric used to assess a company's profitability by calculating the ratio of net income to revenue.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.