Match the terms with the descriptions provided.
-Arrangement whereby goods owned by one party are held and offered for sale by another party.

Question

Quizplus · Accepted Answer

Consignment is the arrangement whereby goods owned by one party (consignor) are held and offered for sale by another party (consignee).

Answer: C) Inventory
 Inventory refers to the goods that a company has on hand and is available for sale.

Answer: D) LIFO Reserve
 LIFO Reserve is an accounting term that refers to the difference between the value of inventory calculated using the LIFO (last in, first out) method and the value of inventory calculated using another method.

Answer: E) Lower of cost or market rule
 Lower of cost or market rule is an accounting principle that requires companies to value their inventory at the lower of its cost or its current market value.

Answer: F) Purchase allowance
 Purchase allowance is a discount that a supplier offers to a customer in exchange for keeping faulty merchandise instead of returning it.

Answer: G) Purchase discounts
 Purchase discounts refer to discounts that a supplier offers to a customer for paying an invoice within a specified time period.

Answer: H) Purchase returns
 Purchase returns refer to goods that a customer returns to a supplier.

Answer: I) Purchases
 Purchases refer to the goods that a company has bought from a supplier and intends to sell to customers.

Note: B) Discount period is not a directly related term to the given descriptions.

Match the Terms with the Descriptions Provided