Which One of the Following Statements Is False

question 80

Multiple Choice

Which one of the following statements is false?

• A)FOB shipping point means the buyer has legal title to the goods while they are in transit.
• B)FOB shipping point means the buyer has legal title to the goods when they are shipped.
• C)FOB destination means the seller has legal title to the goods until they reach the buyer's place of business.
• D)FOB shipping point means the buyer acquires legal title to the goods when they reach the buyer's place of business.

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Definitions:

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods within a certain period.

Times

Often refers to a multiplicative factor or frequency of occurrences within a specified period.

Accounts Receivable Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services provided on credit.