Which of the Following Is True About Acceptance of Goods

question 38

Multiple Choice

Which of the following is true about acceptance of goods by a buyer?

• A)He must indicate that he/she will take them.
• B)Failure to reject cannot be assumed as an acceptance.
• C)He must pay for the goods without inspecting them.
• D)He must assume the seller to be the owner of the good.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials, labor, and overhead.

Payment Terms

The conditions under which a seller will complete a sale, typically specifying the period allowed to a buyer to pay off the amount due.

Price Reduction

Price reduction refers to the lowering of the selling price of goods or services, often to increase demand or respond to market competition.

FOB Shipping Point

A shipping term indicating that the buyer assumes ownership and liability of goods at the point of departure from the seller's shipping dock.