Solved

Match the Items Below by Entering the Appropriate Code Letter

Question 244

Matching

Match the items below by entering the appropriate code letter in the space provided.

Premises:
Sales revenue less sales returns and allowances and sales discounts.
Requires a physical count of goods on hand to compute cost of goods sold.
Gross profit less total operating expenses.
Net sales less cost of goods sold.
A document that supports each credit purchase.
Freight cost to deliver goods to customers reported as a selling expense.
Expenses incurred in the process of earning sales revenue.
Freight terms that require the buyer to pay the freight cost.
An incentive to encourage customers to pay their accounts early.
Freight terms that require the seller to pay the freight cost.
Responses:
Freight-out
FOB shipping point
Periodic inventory System
Gross profit
Income from operations
Net sales
Operating expenses
Purchase invoice
FOB destination
Sales discounts

Correct Answer:

Sales revenue less sales returns and allowances and sales discounts.
Requires a physical count of goods on hand to compute cost of goods sold.
Gross profit less total operating expenses.
Net sales less cost of goods sold.
A document that supports each credit purchase.
Freight cost to deliver goods to customers reported as a selling expense.
Expenses incurred in the process of earning sales revenue.
Freight terms that require the buyer to pay the freight cost.
An incentive to encourage customers to pay their accounts early.
Freight terms that require the seller to pay the freight cost.
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