Match the Term and the Definition

Essay

Match the term and the definition.Not all definitions will be used.
_____ Deposits in transit
_____ Purchase discount
_____ Perpetual inventory system
_____ Merchandising company
_____ Gross profit
_____ Sales discount
_____ Manufacturing company
_____ Shrinkage
_____ Periodic inventory system
A.When a company gives a discount for early payment on goods it sells.
B.A company that buys goods from suppliers and sells them to someone else.
C.When a company updates inventory records at the end of accounting period by physical count.
D.Sales revenue minus total expenses other than income taxes.
E.When a company lowers its selling price to reduce excess inventory.
F.A company that buys inputs and makes goods to sell.
G.When a company authorizes the transfer of funds electronically to another bank.
H.Loss of inventory due to theft,error,or fraud.
I.Physical money or any financial instrument banks accept for deposit.
J.When assets have to be reduced in book value because market value has dropped.
K.When a company receives a lower price on goods it buys in bulk.
L.When a company receives a discount for early payment on goods it buys.
M.When a company has made a deposit that the bank has not yet recorded.
N.Sales revenue minus cost of goods sold.
O.When a company tracks goods in stock by updating inventory every time a purchase or sale takes place.