Question

If goods are shipped FOB destination, the seller does not record revenue from the sale until the goods arrive at their destination because the transaction is not complete until that point.a. Trueb. False

Answer 1

Answer:

Under FOB destination contract,the monetary transaction from the shipment delivery of not officially recorded by the seller until it is finally delivered to the buyer at the delivery point.Hence,the correct answer is option a. or True.

Explanation:

The FOB destination contract does not officially recognize the completion of any shipment or transactions associated with it until it is handed over the to the buyer at the delivery point.While the good/s or shipment is in transit,the tile remains with the seller until it is finally handed over to the buyer,when the tile passes to the buyer.Now,at the delivery point when the buyer actually obtains the product or shipment and officially claims the title,the transaction can be considered to be officially completed and approved.At this point only,the seller can officially record any monetary transaction or revenue generated by the sale of the concerned good or shipment.