Solved

Match the Correct Definition with the Following Terms Below

Question 276

Matching

Match the correct definition with the following terms below.

Premises:
Shipping terms where the ownership of merchandise passes to the buyer when the buyer receives the merchandise.
Losses of inventory due to theft, damage, spoilage, etc. that cause the actual inventory on hand to be less than that on record.
Statement where net income is determined by deducting all expenses from all revenues.
Payment arrangements determined by the seller as to when invoices are due and whether early payment discount is offered.
Inventory system that updates the inventory account for every purchase and sale transaction.
Inventory system that updates the inventory account only at the end of the accounting period based on a physical count of inventory on hand.
Statement that includes subtotals for sales, gross profit, and income from operations in determining net income.
Shipping terms where the ownership of merchandise passes to the buyer when the seller delivers the merchandise to the freight carrier.
Responses:
Credit terms
FOB destination
FOB shipping point
Periodic inventory system
Perpetual inventory system
Inventory shrinkage
Single-step income statement
Multiple-step income statement

Correct Answer:

Shipping terms where the ownership of merchandise passes to the buyer when the buyer receives the merchandise.
Losses of inventory due to theft, damage, spoilage, etc. that cause the actual inventory on hand to be less than that on record.
Statement where net income is determined by deducting all expenses from all revenues.
Payment arrangements determined by the seller as to when invoices are due and whether early payment discount is offered.
Inventory system that updates the inventory account for every purchase and sale transaction.
Inventory system that updates the inventory account only at the end of the accounting period based on a physical count of inventory on hand.
Statement that includes subtotals for sales, gross profit, and income from operations in determining net income.
Shipping terms where the ownership of merchandise passes to the buyer when the seller delivers the merchandise to the freight carrier.
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