Solved

Match the Following Appropriate Definition with the Correct Term

Question 252

Matching

Match the following appropriate definition with the correct term.

Premises:

Responses:

The amount of time allowed before full payment is due.

Purchases discounts

The loss of inventory from theft and deterioration.

Discount period

The time period in which reduced payment can be made by the buyer because of a cash discount offered by a seller of goods on credit.

Credit terms

Price reduction granted by the seller to a buyer of defective or unacceptable merchandise.

Credit period

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

Gross profit

The calculation of net sales minus cost of goods sold.

Periodic inventory system

A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.

Shrinkage

An inventory accounting method that updates accounting records for each purchase and each sale of inventory.

Purchase allowance

An inventory accounting method that updates the accounting records for purchases and sales of inventory only at the end of a period.

Sales discount

A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier.

Perpetual inventory system

Premises:

The amount of time allowed before full payment is due.

The loss of inventory from theft and deterioration.

The time period in which reduced payment can be made by the buyer because of a cash discount offered by a seller of goods on credit.

Price reduction granted by the seller to a buyer of defective or unacceptable merchandise.

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

The calculation of net sales minus cost of goods sold.

A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.

An inventory accounting method that updates accounting records for each purchase and each sale of inventory.

An inventory accounting method that updates the accounting records for purchases and sales of inventory only at the end of a period.

A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier.

Responses:

Purchases discounts

Discount period

Credit terms

Credit period

Gross profit

Periodic inventory system

Shrinkage

Purchase allowance

Sales discount

Perpetual inventory system

Correct Answer:

Premises:

Responses:

The amount of time allowed before full payment is due.

The loss of inventory from theft and deterioration.

The time period in which reduced payment can be made by the buyer because of a cash discount offered by a seller of goods on credit.

Price reduction granted by the seller to a buyer of defective or unacceptable merchandise.

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

The calculation of net sales minus cost of goods sold.

A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.

An inventory accounting method that updates accounting records for each purchase and each sale of inventory.

An inventory accounting method that updates the accounting records for purchases and sales of inventory only at the end of a period.

A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier.