Safety Corporation in New York Sells a Truckload of Protective

question 36

Multiple Choice

Safety Corporation in New York sells a truckload of protective suits, masks, and other safety gear to Toxic, Inc., in Connecticut, "F.O.B. New York." Safety arranges with US Truckline to transport the goods. If the goods are destroyed in transit from New York to Connecticut, the loss will be suffered by

• A) the seller.
• B) the buyer.
• C) the carrier.
• D) businesses by an increase in the prices of safety gear.

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Definitions:

Unadjusted Trial Balance

A list of all the general ledger accounts and their balances at a specific point in time before any adjustments are made for the accounting period.

Columnar Working Paper

An accounting paper used for preparing financial statements or other reports, organized with columns to facilitate data entry and comparison.

Adjusted Trial Balance

A statement listing all accounts and their final balances after adjustments, used to verify the balance of debits and credits.

Unadjusted Trial Balance

A list of all the general ledger accounts and their balances at a specific point in time, before any adjustments are made.