If Berylia Nursery Company Quotes an FOB Origin Price to a Plant

question 15

Multiple Choice

If Berylia Nursery Company quotes an FOB origin price to a plant retailer,it indicates that:

• A) the retailer will be reimbursed for all plants that died in transit.
• B) Berylia will pay all shipping costs.
• C) the plant retailer will pay all shipping costs.
• D) Berylia and the retailer will split the shipping costs.
• E) Berylia will take complete responsibility for the product until it is placed in the retailer's hands.

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Definitions:

Note Payable

A written promise to pay a specified amount of money, usually with interest, by a certain date.

Sale of Equipment

A financial transaction involving the disposal of equipment assets in exchange for cash or other compensation.

Note Receivable

A written promise for amounts to be received by a business, typically including interest, from another party.