Complete the Following Table to Show How FOB Terms Apply

question 215

Essay

Complete the following table to show how FOB terms apply to merchandise inventory purchased by a merchandiser.
$$\begin{array} { | l | l | l | } \hline \text { FOB Term } & \begin{array} { l } \text { When does the title to the } \\\text { goods transfer to the buyer? }\end{array} & \text { Who pays the freight? } \\\hline \text { Shipping Point } & & \\\hline \text { Destination } & & \\\hline\end{array}$$

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Definitions:

Par Value

The nominal dollar amount assigned to a security by the issuer.

Semiannual Interest

Interest that is calculated and paid twice a year, often associated with bonds or loans.

Selling Price

The amount of money charged for a product or service, determined by various factors including cost, demand, and market conditions.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares, at the holder's discretion, typically at certain times during their life.