Solved

Match the Term and the Definition

Question 102

Matching

Match the term and the definition.There are more definitions than terms.

Premises:

Responses:

discount period

Sales revenue minus all sales discounts and sales returns and allowances.

sales returns and allowances

When a cheque has been written but has not yet been recorded by the cheque writer's bank.

gross profit margin

Sales revenue minus all expenses.

purchase returns and allowances

If companies take this long to pay suppliers they must pay a late penalty.

net sales

Net income divided by gross profit.

maximum credit period

The length of time a company has to pay a supplier and still receive an early payment discount.

All the cost of goods bought by a company minus purchase returns and discounts.

Gross profit divided by net sales revenue.

The longest amount of time a company has to pay a supplier the undiscounted amount owed.

When companies reduce price for a sale and then raise it back again.

A reduction in sales revenue that occurs when companies accept credit cards.

When companies send goods back to suppliers.

When a company accepts goods back from customers.

A reduction in price that is given to purchasers who use credit cards.

Gross profit divided by total assets.

Premises:

discount period

sales returns and allowances

gross profit margin

purchase returns and allowances

net sales

maximum credit period

Responses:

Sales revenue minus all sales discounts and sales returns and allowances.

When a cheque has been written but has not yet been recorded by the cheque writer's bank.

Sales revenue minus all expenses.

If companies take this long to pay suppliers they must pay a late penalty.

Net income divided by gross profit.

The length of time a company has to pay a supplier and still receive an early payment discount.

All the cost of goods bought by a company minus purchase returns and discounts.

Gross profit divided by net sales revenue.

The longest amount of time a company has to pay a supplier the undiscounted amount owed.

When companies reduce price for a sale and then raise it back again.

A reduction in sales revenue that occurs when companies accept credit cards.

When companies send goods back to suppliers.

When a company accepts goods back from customers.

A reduction in price that is given to purchasers who use credit cards.

Gross profit divided by total assets.

Correct Answer:

Premises:

Responses:

Sales revenue minus all sales discounts and sales returns and allowances.

When a cheque has been written but has not yet been recorded by the cheque writer's bank.

Sales revenue minus all expenses.

If companies take this long to pay suppliers they must pay a late penalty.

Net income divided by gross profit.

The length of time a company has to pay a supplier and still receive an early payment discount.

All the cost of goods bought by a company minus purchase returns and discounts.

Gross profit divided by net sales revenue.

The longest amount of time a company has to pay a supplier the undiscounted amount owed.

When companies reduce price for a sale and then raise it back again.

A reduction in sales revenue that occurs when companies accept credit cards.

When companies send goods back to suppliers.

When a company accepts goods back from customers.

A reduction in price that is given to purchasers who use credit cards.

Gross profit divided by total assets.