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Match the Following Definitions and Terms

Question 212

Matching

Match the following definitions and terms:

Premises:

Responses:

General and administrative expenses

Inventory losses that can occur as a result of theft or deterioration.

Merchandise inventory

The abbreviation for free on board; refers to the point when ownership of goods passes to the buyer.

Selling expenses

Expenses that support overall operations and includes expenses related to accounting, human resource management and financial management.

Multiple-step income statement

The catalog price of an item before any trade discount is deducted.

FOB

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

Inventory shrinkage

The abbreviation for end-of-month; used to describe credit terms for some transactions.

List price

Products a company owns and intends to sell.

Acid-test ratio

An income statement format that shows only one subtotal for total expenses.

Single-step income statement

An income statement format that shows detailed computations of net sales and other costs and expenses and reports subtotals for various classes of items.

EOM

A ratio used to assess a company's ability to pay its current liabilities; defined as quick assets divided by current liabilities.

Premises:

General and administrative expenses

Merchandise inventory

Selling expenses

Multiple-step income statement

FOB

Inventory shrinkage

List price

Acid-test ratio

Single-step income statement

EOM

Responses:

Inventory losses that can occur as a result of theft or deterioration.

The abbreviation for free on board; refers to the point when ownership of goods passes to the buyer.

Expenses that support overall operations and includes expenses related to accounting, human resource management and financial management.

The catalog price of an item before any trade discount is deducted.

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

The abbreviation for end-of-month; used to describe credit terms for some transactions.

Products a company owns and intends to sell.

An income statement format that shows only one subtotal for total expenses.

An income statement format that shows detailed computations of net sales and other costs and expenses and reports subtotals for various classes of items.

A ratio used to assess a company's ability to pay its current liabilities; defined as quick assets divided by current liabilities.

Correct Answer:

Premises:

Responses:

General and administrative expenses

Merchandise inventory

Selling expenses

Multiple-step income statement

FOB

Inventory shrinkage

List price

Acid-test ratio