Which of the Following Means That the Shipment Is Free

question 69

Multiple Choice

Which of the following means that the shipment is free on board at the point of shipment and the buyer pays all shipping costs?

• A) FOB destination
• B) FOB shipping point
• C) COD
• D) 4/10, eom

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Definitions:

Full Disclosure Principle

A financial reporting guideline requiring companies to disclose all relevant and necessary information in their financial statements and footnotes to help users make well-informed decisions.

Financial Statements

Official documentation reflecting the monetary transactions and status of a company, individual, or different entity.

Accounting Equation

A fundamental principle of accounting that maintains that assets are always equal to the sum of liabilities plus equity (Assets = Liabilities + Equity).

Accounting Equation

The accounting equation represents the relationship between a company's assets, liabilities, and equity, illustrating that assets are funded by borrowing (liabilities) or investing (equity).