If Sales Are Made FOB (Free on Board) Shipping Point

question 35

True/False

If sales are made FOB (free on board) shipping point or FOB destination at a period end, revenue does not need to be adjusted in either situation.

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Definitions:

Affects

Influences or changes caused by one factor on another within a business or system.

Accounts

Records within financial accounting that are used to keep track of increases or decreases in specific financial components, like assets, liabilities, equity, revenue, and expenses.

Dividends Declared

Dividends Declared are profits that a company's board of directors has decided to distribute to shareholders, but which have not yet been paid out.

Increase

An uptick in size, number, value, or strength.