Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Net method
A)Most recent purchases will be included in ending inventory.
B)1 - (Cost of goods sold Net sales).
C)Purchase discounts not taken are included in inventory.
D)Products that are not yet complete.
E)Purchase discounts not taken are considered interest expense.

Question

Quizplus · Accepted Answer

The net method of accounting for purchase discounts treats discounts not taken as an interest expense, implying that the cost of not taking advantage of the discount is akin to the cost of borrowing the equivalent amount.

Listed Below Are 5 Terms Followed by a List of Phrases