Solved

Match Each of the Following Terms with the Descriptions Below

Question 70

Matching

Match each of the following terms with the descriptions below.

Premises:
A temporary account that keeps track of the cash discounts taken by customers who purchased merchandise on credit.
A costing method that assumes that the last items purchased will be the first items sold.
A variance created by the difference between the actual selling price and the budgeted sale price.
A temporary account that keeps track of the cost of customer dissatisfaction.
A variance that indicates the difference in revenue due to a change in sales volume.
The amount of total account receivables a company expects to collect after subtracting estimated uncollectible accounts.
Ending inventory will represent the cost of the most recent purchases as a result of this cost flow assumption.
This provides the perfect match of the cost of an inventory item and the revenue it generates.
Responses:
Sales returns and allowances
Last-in, last out (LIFO)
Sales price variance
Sales quantity variance
Specific identification method
Net realizable value
First-in, first out (FIFO)
Sales discount

Correct Answer:

A temporary account that keeps track of the cash discounts taken by customers who purchased merchandise on credit.
A costing method that assumes that the last items purchased will be the first items sold.
A variance created by the difference between the actual selling price and the budgeted sale price.
A temporary account that keeps track of the cost of customer dissatisfaction.
A variance that indicates the difference in revenue due to a change in sales volume.
The amount of total account receivables a company expects to collect after subtracting estimated uncollectible accounts.
Ending inventory will represent the cost of the most recent purchases as a result of this cost flow assumption.
This provides the perfect match of the cost of an inventory item and the revenue it generates.
Related Questions