Solved

Match the Term and the Definition

Question 103

Matching

Match the term and the definition.Not all definitions will be used.

Premises:

Responses:

Shrinkage

Sales revenue minus total expenses other than income taxes.

Gross profit

When a company receives a discount for early payment on goods it buys.

Manufacturing company

When a company authorizes the transfer of funds electronically to another bank.

Periodic inventory system

A company that buys inputs and makes goods to sell.

Perpetual inventory system

When a company receives a lower price on goods it buys in bulk.

Sales discount

When a company gives a discount for early payment on goods it sells.

Purchase discount

Physical money or any financial instrument banks accept for deposit.

Merchandising company

A company that buys goods from suppliers and sells them to someone else.

Sales revenue minus cost of goods sold.

When a company lowers its selling price to reduce excess inventory.

When a company updates inventory records at the end of accounting period by physical count.

When a company tracks goods in stock by updating inventory every time a purchase or sale takes place.

Loss of inventory due to theft,error,or fraud.

When assets have to be reduced in book value because market value has dropped.

Premises:

Shrinkage

Gross profit

Manufacturing company

Periodic inventory system

Perpetual inventory system

Sales discount

Purchase discount

Merchandising company

Responses:

Sales revenue minus total expenses other than income taxes.

When a company receives a discount for early payment on goods it buys.

When a company authorizes the transfer of funds electronically to another bank.

A company that buys inputs and makes goods to sell.

When a company receives a lower price on goods it buys in bulk.

When a company gives a discount for early payment on goods it sells.

Physical money or any financial instrument banks accept for deposit.

A company that buys goods from suppliers and sells them to someone else.

Sales revenue minus cost of goods sold.

When a company lowers its selling price to reduce excess inventory.

When a company updates inventory records at the end of accounting period by physical count.

When a company tracks goods in stock by updating inventory every time a purchase or sale takes place.

Loss of inventory due to theft,error,or fraud.

When assets have to be reduced in book value because market value has dropped.

Correct Answer:

Premises:

Responses:

Sales revenue minus total expenses other than income taxes.

When a company receives a discount for early payment on goods it buys.

When a company authorizes the transfer of funds electronically to another bank.

A company that buys inputs and makes goods to sell.

When a company receives a lower price on goods it buys in bulk.

When a company gives a discount for early payment on goods it sells.

Physical money or any financial instrument banks accept for deposit.

A company that buys goods from suppliers and sells them to someone else.

Sales revenue minus cost of goods sold.

When a company lowers its selling price to reduce excess inventory.

When a company updates inventory records at the end of accounting period by physical count.

When a company tracks goods in stock by updating inventory every time a purchase or sale takes place.

Loss of inventory due to theft,error,or fraud.

When assets have to be reduced in book value because market value has dropped.