FOB ________ Means the Buyer Accepts Ownership When the Goods

question 118

Short Answer

FOB ________ means the buyer accepts ownership when the goods depart the seller's place of business. The buyer is responsible for paying shipping costs and bears the risk of damage or loss when goods are in transit.

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Definitions:

Statement of Retained Earnings

This report outlines the fluctuation in a company’s retained earnings over a particular accounting timeframe, incorporating elements like net profits and dividend distributions.

Cash Flow Statement

A financial document summarizing the total cash received by a company from its operational activities and external investments, alongside all expenditures on operations and investments within a specific timeframe.

Equipment Account

An account on a company's balance sheet that reports the value of the company's equipment used in operations, less any accumulated depreciation.

Posting

The process of recording financial transactions in the ledger of a company as part of the accounting cycle.