For Which of the Following Sale Contracts Does Title and Risk

question 13

Multiple Choice

For which of the following sale contracts does title and risk of loss remain with the seller until the buyer accepts the goods?

• A) A sale on approval
• B) A sale or return
• C) A bulk sale
• D) A sale "FAS [point of origin]"

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Definitions:

Equipment Section

Part of a company's balance sheet or financial statements that lists the tangible assets used in operations, like machinery, along with their net book values.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, showing assets, liabilities, and equity as of a specific date.

Current Liabilities

Short-term financial obligations that are due within one year or within the current business cycle, whichever is longer.

Obligations

Responsibilities or duties to fulfill terms of contracts, loans, and legal agreements.