If Title to Merchandise Purchases Passes to the Buyer When

question 125

Multiple Choice

If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are

• A) n/30
• B) FOB shipping point
• C) FOB destination
• D) consigned

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Definitions:

Preference Rights

Rights giving certain shareholders or bondholders a priority claim over assets or earnings, typically in the event of liquidation or dividend distribution.

Authorized Shares

The maximum number of shares a corporation is legally allowed to issue, as specified in its articles of incorporation.

Paid-In Capital

The total amount of money that shareholders have invested in a company through the purchase of stock.

Issue Price

This refers to the price at which new securities are issued to the public or to investors by the issuing company.