Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Who is responsible for the freight cost when the terms are FOB destination?

The seller

Both the buyer and seller equally

The shipping company

The buyer

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Verified step by step guidance

Understand the term 'FOB destination': FOB stands for 'Free on Board,' and 'destination' indicates that the seller retains ownership and responsibility for the goods until they reach the buyer's location.

Analyze the freight cost responsibility under FOB destination: Since the seller owns the goods during transit, the seller is responsible for the freight cost.

Compare FOB destination with FOB shipping point: In FOB shipping point, the buyer takes ownership and responsibility for the goods once they leave the seller's premises, including freight costs. This distinction helps clarify the seller's responsibility under FOB destination.

Eliminate incorrect options: The buyer, shipping company, and shared responsibility are not correct under FOB destination terms. The seller is solely responsible for freight costs.

Conclude the explanation: Under FOB destination terms, the seller is responsible for the freight cost because ownership and risk transfer to the buyer only upon delivery at the destination.