The Term F.O.B

question 38

Multiple Choice

The term F.O.B.:

• A)can indicate a destination or shipment contract.
• B)stands for "freight on board."
• C)requires the seller to insure the goods for the buyer's benefit.
• D)shifts the risk of loss to the buyer when the goods are identified.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Equity

The value of an owner's interest in a property or business, after all debts and other liabilities have been deducted.

Inventory Turnover Ratio

A financial metric indicating how many times a company’s inventory is sold and replaced over a particular period, revealing efficiency in inventory management.

Average Merchandise Inventory

The average value of a company’s inventory over a certain period, calculated to evaluate inventory levels and turnover.