FOB shipping point means title passes when the seller ships the inventory, not when the buyer receives it.Group startsTrue or False

The statement is True.

In the context of shipping terms, "FOB" stands for "Free On Board," which is critical in determining when the title of ownership for goods passes from the seller to the buyer. When the terms specify "FOB shipping point," it indicates that the title passes from the seller to the buyer at the time the goods are shipped, rather than when they are delivered to the buyer's location. This means that the buyer assumes responsibility for the goods and any associated risks as soon as they leave the seller's premises.

Thus, if there are damages or losses that occur during transit, the buyer would bear those risks because legally they own the goods from the moment they are shipped. This concept is particularly important for accounting and inventory purposes, as it affects when transactions are recorded in the financial statements of both parties.