What Is the Essential Element in Determining Who Bears the Risk

question 3

Multiple Choice

What is the essential element in determining who bears the risk of loss of goods?

• A)The party producing the goods bears the risk of loss.
• B)Risk of loss follows the cash in a transaction.
• C)Contracts attempting to shift the risk of loss are void due to illegality.
• D)The party with control over the goods bears the risk of loss.

---

Definitions:

Journalize

The act of recording financial transactions in a company's ledger.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interests and potentially rights to dividends and voting in company matters.

Record

To document financial transactions in an accounting system.