When Goods Are Shipped FOB Shipping Point, the Buyer Has

question 44

True/False

When goods are shipped FOB shipping point, the buyer has economic control of the inventory and must record the goods in its inventory accounts as soon as the goods are shipped.

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Definitions:

Stop Payment

A directive issued to a bank for the termination of a check or payment still pending processing.

Check Truncation

The process of converting a physical check into a digital form for electronic processing and payment.

Radical

An individual or viewpoint favoring drastic political, economic, or social reforms; often involves changes to the status quo.

Drawee Bank

The financial institution upon which a check or draft is drawn and is responsible for its payment.