Solved

Match the Following Definitions and Terms by Placing the Number

Question 198

Matching

Match the following definitions and terms by placing the number that identifies the best definition in the blank space next to the term.

Premises:

Responses:

The description of the amounts and timing of payments from a buyer to a seller.

Sales discount

A cash discount granted to customers for paying within the discount period.

Credit memorandum

The time period in which a cash discount is available and a reduced payment can be made by the buyer.

Periodic inventory system

A notification that the sender has debited the recipient's account kept by the sender.

Discount period

The expenses of promoting sales, by displaying and advertising merchandise, making sales, and delivering goods to customers.

Gross profit

An accounting method that continually updates accounting records for merchandise transactions.

Perpetual inventory system

A notification that the sender has credited the recipient's account kept by the sender.

Selling expenses

The amount of time allowed before full payment is due.

Credit period

An accounting method that updates the accounting records for merchandise transactions only at the end of a period.

Credit terms

Net sales less cost of goods sold.

Debit memorandum

Premises:

The description of the amounts and timing of payments from a buyer to a seller.

A cash discount granted to customers for paying within the discount period.

The time period in which a cash discount is available and a reduced payment can be made by the buyer.

A notification that the sender has debited the recipient's account kept by the sender.

The expenses of promoting sales, by displaying and advertising merchandise, making sales, and delivering goods to customers.

An accounting method that continually updates accounting records for merchandise transactions.

A notification that the sender has credited the recipient's account kept by the sender.

The amount of time allowed before full payment is due.

An accounting method that updates the accounting records for merchandise transactions only at the end of a period.

Net sales less cost of goods sold.

Responses:

Sales discount

Credit memorandum

Periodic inventory system

Discount period

Gross profit

Perpetual inventory system

Selling expenses

Credit period

Credit terms

Debit memorandum

Correct Answer:

Premises:

Responses:

The description of the amounts and timing of payments from a buyer to a seller.

A cash discount granted to customers for paying within the discount period.

The time period in which a cash discount is available and a reduced payment can be made by the buyer.

A notification that the sender has debited the recipient's account kept by the sender.

The expenses of promoting sales, by displaying and advertising merchandise, making sales, and delivering goods to customers.

An accounting method that continually updates accounting records for merchandise transactions.

A notification that the sender has credited the recipient's account kept by the sender.

The amount of time allowed before full payment is due.

An accounting method that updates the accounting records for merchandise transactions only at the end of a period.

Net sales less cost of goods sold.