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Match the Appropriate Definition with Correct Term

Question 17

Matching

Match the appropriate definition with correct term.

Premises:
A notification that informs a buyer of a seller's credit fo a buyers account.
An inventory accounting method that updates the accounting records for merchandise transactions only at the end of a period.
A notification that informs the seller of a debit made to the seller's account payable in the buyers records.
A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.
A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier.
The description of the amounts and timing of payments from a buyer to a seller for a purchase
The calculation of net sales less cost of goods sold.
The time period in which reduced payment can be made by the buyer because of a cash discount offered by a seller of goods on credit.
An inventory accounting method that continually updates accounfing records for inventory available for sale and inventory sold.
The amount of fime allowed before full payment is dus.
Responses:
Periodic inventory system
Discount period
Credit memorandum
Credit terms
Perpetual inventory system
Gross profit
Purchase discount
Sales discount
Credit period
Debit memorandum

Correct Answer:

A notification that informs a buyer of a seller's credit fo a buyers account.
An inventory accounting method that updates the accounting records for merchandise transactions only at the end of a period.
A notification that informs the seller of a debit made to the seller's account payable in the buyers records.
A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.
A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier.
The description of the amounts and timing of payments from a buyer to a seller for a purchase
The calculation of net sales less cost of goods sold.
The time period in which reduced payment can be made by the buyer because of a cash discount offered by a seller of goods on credit.
An inventory accounting method that continually updates accounfing records for inventory available for sale and inventory sold.
The amount of fime allowed before full payment is dus.
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