It Is Important to Know When Ownership of Goods Passes

question 22

Multiple Choice

It is important to know when ownership of goods passes from the seller to the buyer for three out of the following four reasons.Which answer option is NOT one of those reasons?

• A)Risk of loss or damage to the goods passes with ownership.
• B)Once ownership has passed to the buyer,the buyer generally cannot reject the goods for breach of a condition.
• C)Possession of the goods passes with ownership.
• D)Until ownership passes to the buyer,the buyer cannot pass on title to third parties.

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Definitions:

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting the decrease in value over time.

Economic Profit

Economic profit is the surplus that remains when total revenue exceeds the total costs, including both explicit and implicit costs.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Total Revenues

The overall amount of money generated by a business from its sales or services before any costs or expenses are deducted.