Chapter 7A Flashcards
Who owns goods in FOB Shipping Point?
Buyer
Who owns goods in FOB Destination?
Seller
Who owns goods in Cost of Insurance and Freight or CIF?
Buyer
Who owns goods in Free Alongside or FAS?
Buyer
Who is liable to pay freight under FOB Shipping Point?
Buyer
Who is liable to pay freight under FOB Destination?
Seller
Under freight prepaid, who paid the freight?
Seller
Under freight collect, who paid the freight?
Buyer
Who owns consigned goods?
The consignor
This is a contract under which an entity bills a customer for a product, but the entity remains physical possession of the product until it is transferred to the customer at a point in time in the future.
Bill-and-hold arrangement
This involves the buyer periodically paying a portion of the price for the purchase of goods. The seller maintains custody of the goods until the buyer has fully paid the balance of the transaction price.
Lay away sale
How are lay away sales accounted for?
Included in the seller’s inventory balance.
This involves the seller’s delivery of goods to the buyer, with the buyer paying in installment basis.
Installment Sale
