Match the terms with the definitions.
-The difference between net sales and cost of goods sold.

Question

Quizplus · Accepted Answer

Gross profit is the difference between net sales and cost of goods sold.

Answer: B
 Cost of goods sold is the cost associated with producing and acquiring the goods that a company sells.

Answer: C
 FOB destination is a shipping term where the title and ownership of goods transfer from the seller to the buyer when the goods reach the buyer's location.

Answer: D
 FOB shipping point is a shipping term where the title and ownership of goods transfer from the seller to the buyer when the goods leave the seller's location.

Answer: L
 Trade discount is a reduction in the list price of a good or service that a supplier offers to a purchaser in the same trade.

The other terms are:

A) Accounts payable ledger - a record of money owed by a company to its vendors or suppliers.
 
F) Purchase invoice - a document sent by a supplier to a purchaser that lists the goods or services provided and their cost.

G) Purchase order - a document sent by a purchaser to a supplier that requests goods or services to be provided.

H) Purchase requisition - a document used by internal departments to request goods or services from the purchasing department.

I) Purchases - the amount of money a company spends on acquiring goods or services for resale or use in its operations.

J) Receiving report - a document that confirms the receipt of goods or services and provides details about their condition and quantity.

K) Schedule of accounts payable - a report that lists the amounts owed to vendors or suppliers and their due dates.

Match the Terms with the Definitions