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Match the Following Definitions and Terms

Question 136

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Match the following definitions and terms

Premises:
The description of the amounts and timing of payments from a buyer to a seller.
Net sales less cost of goods sold.
The amount of time allowed before full payment is due.
An accounting method that continually updates accounting records for merchandise transactions.
A notification that the sender has debited the recipient's account kept by the sender.
A cash discount granted to customers for paying within the discount period.
The expenses of promoting sales, by displaying and advertising merchandise, making sales, and delivering goods to customers.
An accounting method that updates the accounting records for merchandise transactions only at the end of a period.
The time period in which a cash discount is available and a reduced payment can be made by the buyer.
A notification that the sender has credited the recipient's account kept by the sender.
Responses:
Perpetual inventory system
Periodic inventory system
Discount period
Debit memorandum
Selling expenses
Credit memorandum
Sales discount
Gross profit
Credit terms
Credit period

Correct Answer:

The description of the amounts and timing of payments from a buyer to a seller.
Net sales less cost of goods sold.
The amount of time allowed before full payment is due.
An accounting method that continually updates accounting records for merchandise transactions.
A notification that the sender has debited the recipient's account kept by the sender.
A cash discount granted to customers for paying within the discount period.
The expenses of promoting sales, by displaying and advertising merchandise, making sales, and delivering goods to customers.
An accounting method that updates the accounting records for merchandise transactions only at the end of a period.
The time period in which a cash discount is available and a reduced payment can be made by the buyer.
A notification that the sender has credited the recipient's account kept by the sender.
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