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Match the Following Terms with the Appropriate Definition

Question 188

Matching

Match the following terms with the appropriate definition.

Premises:

Responses:

An accounting method that continually updates accounting records for merchandise transactions.

Debit memorandum

A cash discount granted to customers for paying within the discount period.

Perpetual inventory system

The amount of time allowed before full payment is due.

Gross profit

An accounting method that updates the accounting records for merchandise transactions only at the end of a period.

Credit terms

The description of the amounts and timing of payments from a buyer to a seller.

Selling expenses

The expenses of promoting sales, by displaying and advertising merchandise, making sales, and delivering goods to customers.

Periodic inventory system

The time period in which a cash discount is available and a reduced payment can be made by the buyer.

Discount period

A notification that the sender has credited the recipient's account kept by the sender.

Credit memorandum

Net sales less cost of goods sold.

Credit period

A notification that the sender has debited the recipient's account kept by the sender.

Sales discount

Premises:

An accounting method that continually updates accounting records for merchandise transactions.

A cash discount granted to customers for paying within the discount period.

The amount of time allowed before full payment is due.

An accounting method that updates the accounting records for merchandise transactions only at the end of a period.

The description of the amounts and timing of payments from a buyer to a seller.

The expenses of promoting sales, by displaying and advertising merchandise, making sales, and delivering goods to customers.

The time period in which a cash discount is available and a reduced payment can be made by the buyer.

A notification that the sender has credited the recipient's account kept by the sender.

Net sales less cost of goods sold.

A notification that the sender has debited the recipient's account kept by the sender.

Responses:

Debit memorandum

Perpetual inventory system

Gross profit

Credit terms

Selling expenses

Periodic inventory system

Discount period

Credit memorandum

Credit period

Sales discount

Correct Answer:

Premises:

Responses:

An accounting method that continually updates accounting records for merchandise transactions.

A cash discount granted to customers for paying within the discount period.

The amount of time allowed before full payment is due.

An accounting method that updates the accounting records for merchandise transactions only at the end of a period.

The description of the amounts and timing of payments from a buyer to a seller.

The expenses of promoting sales, by displaying and advertising merchandise, making sales, and delivering goods to customers.

The time period in which a cash discount is available and a reduced payment can be made by the buyer.

A notification that the sender has credited the recipient's account kept by the sender.

Net sales less cost of goods sold.

A notification that the sender has debited the recipient's account kept by the sender.