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When Merchandise Is Sold FOB Shipping Point,the Buyer Is Responsible

question 143

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When merchandise is sold FOB shipping point,the buyer is responsible for the shipping costs.


Definitions:

Cash Inflows

Money received by a business from its various activities, including sales, financing, and investments, contributing to its net cash flow.

Lockbox Systems

A service offered by banks to companies for the receipt of payment from customers, involving the use of specially designed lockboxes to speed up collections.

Lockbox Plan

A banking service that speeds up collection and processing of company receipts by having those payments mailed directly to a location accessible by the bank.

Collection Of Cheques

Collection of Cheques refers to the process banks undertake to collect the amount specified on a cheque from the bank upon which the cheque is drawn.

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