Matching
Match the following definitions and terms by placing the number that identifies the best definition in the blank space next to the term.
Premises:
Inventory losses that can occur as a result of theft or deterioration.
The abbreviation for free on board; refers to the point when ownership of goods passes to the buyer.
An income statement format that shows only one subtotal for total expenses.
Products a company owns and intends to sell.
Expenses that support overall operations and includes expenses related to accounting, human resource management and financial management.
The abbreviation for end-of-month; used to describe credit terms for some transactions.
The expenses of promoting sales by displaying and advertising merchandise, making sales and delivering goods to customers.
The catalog price of an item before any trade discount is deducted.
A ratio used to assess a company's ability to pay its current liabilities; defined as quick assets divided by current liabilities.
An income statement format that shows detailed computations of net sales and other costs and expenses and reports subtotals for various classes of items.
Responses:
Inventory shrinkage
EOM
List price
Merchandise inventory.
Acid-test ratio
FOB
Single-step income statement
Selling expenses
General and administrative expenses
Multiple-step income statement
Correct Answer:
Premises:
Responses:
Inventory losses that can occur as a result of theft or deterioration.
The abbreviation for free on board; refers to the point when ownership of goods passes to the buyer.
An income statement format that shows only one subtotal for total expenses.
Products a company owns and intends to sell.
Expenses that support overall operations and includes expenses related to accounting, human resource management and financial management.
The abbreviation for end-of-month; used to describe credit terms for some transactions.
The expenses of promoting sales by displaying and advertising merchandise, making sales and delivering goods to customers.
The catalog price of an item before any trade discount is deducted.
A ratio used to assess a company's ability to pay its current liabilities; defined as quick assets divided by current liabilities.
An income statement format that shows detailed computations of net sales and other costs and expenses and reports subtotals for various classes of items.
Premises:
Inventory losses that can occur as a result of theft or deterioration.
The abbreviation for free on board; refers to the point when ownership of goods passes to the buyer.
An income statement format that shows only one subtotal for total expenses.
Products a company owns and intends to sell.
Expenses that support overall operations and includes expenses related to accounting, human resource management and financial management.
The abbreviation for end-of-month; used to describe credit terms for some transactions.
The expenses of promoting sales by displaying and advertising merchandise, making sales and delivering goods to customers.
The catalog price of an item before any trade discount is deducted.
A ratio used to assess a company's ability to pay its current liabilities; defined as quick assets divided by current liabilities.
An income statement format that shows detailed computations of net sales and other costs and expenses and reports subtotals for various classes of items.
Responses:
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