Match the terms with the descriptions related to merchandise sales and purchases.
-Relies on a count of inventory on the last day of the year to determine the amount on hand.

Question

Quizplus · Accepted Answer

The periodic inventory system relies on a count of inventory on the last day of the year to determine the amount on hand.

Answer: B 
 The perpetual inventory system records inventory changes in real-time, allowing for up-to-date information on inventory levels.

Answer: C 
 Net purchases is the total amount of merchandise purchases less any returns, discounts, or allowances.

Answer: G 
 FOB shipping point means the buyer is responsible for transportation costs and assumes ownership of the goods once they are picked up by the carrier.

Answer: E 
 Cost of goods available for sale is the total cost of merchandise available for purchase, including beginning inventory and net purchases.

Answer: D 
 FOB destination means the seller is responsible for transportation costs and retains ownership of the goods until they are delivered to the buyer.

Answer: A 
 Transportation-in is a type of freight expense that is incurred when goods are transported to the buyer's location.

Answer: H 
 Delivery expense is a type of cost that is incurred when goods are transported to the buyer's location, typically associated with the FOB shipping point term.

Match the Terms with the Descriptions Related to Merchandise Sales