Choose the appropriate letter to match the term and the definition.There are more definitions than terms.
Term
1.____ Inventory
2.____ Purchase Discount
3.____ Purchase Returns and Allowances
4.____ Sales Discount
5.____ Sales Returns & Allowances
6.____ Shrinkage
Definition
A.The sum of beginning inventory and purchases for the period.
B.The cost of inventory lost to theft,fraud,and error.
C.A reduction in the cost of inventory purchases associated with unsatisfactory goods.
D.A cash discount received for prompt payment of a purchase on account.
E.Refunds and price reductions given to customers after goods have been sold and found unsatisfactory.
F.Assets acquired for resale to customers.
G.A sales price reduction given to customers for prompt payment of their account balance.
H.Presents important subtotals,such as gross profit,to help distinguish core operating results from other,less significant items that affect net income.
I.Net sales minus cost of goods sold.It is a subtotal,not an account.
J.A ratio indicating the percentage of profit earned on each dollar of sales,after considering the cost of products sold.
Correct Answer:
Verified
2.D
3....
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q200: FAD Company uses a periodic inventory system
Q201: Sinton Inc.uses a periodic inventory system.During the
Q202: Sinton Inc.uses a periodic inventory system.During the
Q203: Assume that sales discounts in the current
Q204: Choose the appropriate letter to match the
Q205: Steve's Skateboards uses the periodic inventory system
Q206: A company reported a decrease in sales
Q207: Neutron uses a periodic inventory system.On June
Q208: The following is a listing of all
Q210: Choose the appropriate letter to match the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents