Match the terms below with the correct definitions.
-Title or ownership changes hands when the buyer receives the goods.
A)FOB destination
B)Sales Returns and Allowances
C)Controlling account
D)Accounts receivable ledger
E)Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal

Question

Quizplus · Accepted Answer

FOB destination means title or ownership changes hands when the buyer receives the goods.

Answer: B 
 Sales Returns and Allowances is a contra account to Sales and is used to record returns or allowances granted to customers.

Answer: C 
 Controlling account is a summary account in the general ledger that provides a total balance for a group of subsidiary ledger accounts.

Answer: E 
 Subsidiary ledger contains detailed information about specific accounts and is used to support the general ledger.

Answer: F 
 Purchases journal is a special journal used to record all purchases on credit.

Answer: G 
 Sales invoice is a document used to bill customers for goods or services they have purchased.

Answer: H 
 FOB shipping point means title or ownership changes hands when the goods leave the seller's location.

Answer: I 
 General journal is a journal used to record transactions that do not fit into any of the other special journals.

Match the Terms Below with the Correct Definitions