Solved

Match the Term and the Definition

Question 53

Matching

Match the term and the definition.Not all definitions will be used.

Premises:
Shrinkage
Gross profit
Manufacturing company
Periodic inventory system
Perpetual inventory system
Sales discount
Purchase discount
Merchandising company
Responses:
Sales revenue minus total expenses other than income taxes.
When a company receives a discount for early payment on goods it buys.
When a company authorizes the transfer of funds electronically to another bank.
A company that buys inputs and makes goods to sell.
When a company receives a lower price on goods it buys in bulk.
When a company gives a discount for early payment on goods it sells.
Physical money or any financial instrument banks accept for deposit.
A company that buys goods from suppliers and sells them to someone else.
Sales revenue minus cost of goods sold.
When a company lowers its selling price to reduce excess inventory.
When a company updates inventory records at the end of accounting period by physical count.
When a company tracks goods in stock by updating inventory every time a purchase or sale takes place.
Loss of inventory due to theft,error,or fraud.
When assets have to be reduced in book value because market value has dropped.

Correct Answer:

Sales revenue minus total expenses other than income taxes.
When a company receives a discount for early payment on goods it buys.
When a company authorizes the transfer of funds electronically to another bank.
A company that buys inputs and makes goods to sell.
When a company receives a lower price on goods it buys in bulk.
When a company gives a discount for early payment on goods it sells.
Physical money or any financial instrument banks accept for deposit.
A company that buys goods from suppliers and sells them to someone else.
Sales revenue minus cost of goods sold.
When a company lowers its selling price to reduce excess inventory.
When a company updates inventory records at the end of accounting period by physical count.
When a company tracks goods in stock by updating inventory every time a purchase or sale takes place.
Loss of inventory due to theft,error,or fraud.
When assets have to be reduced in book value because market value has dropped.
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