Question

A. Credit period B. Credit terms C. Discount period D. FOB destination E. FOB shipping point F. General and administrative expenses G. Gross profit H. Inventory shrinkage 1. Merchandise inventory J. Multiple-step income statement K. Periodic inventory system L. Perpetual inventory system M. Purchase allowance N. Purchases discounts O. Sales discount P. Selling expenses Q. Shrinkage R. Single-step income statement S. Trade discount __A cash discount granted from the view of the seller, indicated in the credit terms on the invoice. 2. A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier 3. A given percent deducted from a list price often granted to customers purchasing large quantities of merchandise. 4. An income statement format that lists cost of goods sold as another expense and shows only one subtotal for total expenses. 5. Products a company owns and intends to sell. 6. An income statement format that shows detailed computations of net sales and other costs and expenses, and reports subtotals for various classes of items. 7. An inventory accounting method that updates accounting records for each purchase and each sale of inventory. 8. An inventory accounting method that updates the accounting records for purchases and sales of inventory only at the end of a period. 9. _Inventory losses that require an adjusting entry to account for losses from theft or deterioration. 10._ Price reduction granted by the seller to a buyer of defective or unacceptable merchandise. 11.__The amount of time allowed before full payment is due. 12._The calculation of net sales minus cost of goods sold. 13. The description of the amounts and timing of payments from a buyer to a seller for a purchase. 14._The expenses of advertising merchandise, making sales, and delivering goods to customers. 15._The expenses that support a company's overall operations and include costs related to accounting, human resources and finance. 16. The loss of inventory from theft and deterioration. 17._The point of ownership transfer from seller to buyer that takes place when the goods arrive at the buyer's place of business. 18. The point of ownership transfer from seller to buyer that takes place when the goods depart the seller's place of business. 19._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.

Answer 1

A. Credit period

Answer: Option 11. Credit period is the amount of time allowed before full payment is due

B. Credit terms

Answer: Option 13. Credit terms is the description of the amounts and timing of payments from a buyer to a seller for a purchase

C. Discount period

Answer: Option 19. Discount period is 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

D. FOB Destination

Answer: Option 17. FOB destination means the point of ownership transfer from seller to buyer that takes place when the goods arrive at the buyer's place of business.

E. FOB Shipping point

Answer: Option 18. FOB Shipping point means the point of ownership transfer from seller to buyer that takes place when the goods depart the seller's place of business.

F. General and Administrative expenses

Answer: Option 15. General and administrative expenses are the expenses that support a company's overall operations and include costs related to accounting, human resources and finance.

G. Gross Profit

Answer: Option 12. Gross profit is the calculation of net sales minus cost of goods sold

H. Inventory Shrinkage

Answer: Option 9. Inventory shrinkage is inventory losses that require an adjusting entry to account for losses from theft or deterioration.

I. Merchandise inventory

Answer: Option 5. Merchandise inventory is the products that a company owns and intends to sell.

J. Multiple-step income statement

Answer: Option 6 Multiple-step income statement is an income statement format that shows detailed computations of net sales and other costs and expenses, and reports subtotals for various classes of items.

K. Periodic inventory system

Answer: Option 8. Periodic inventory system is an inventory accounting method that updates the accounting records for purchases and sales of inventory only at the end of a period.

L. Perpetual Inventory system

Answer: Option 7. Perpetual inventory system is an inventory accounting method that updates accounting records for each purchase and each sale of inventory.

M. Purchase Allowance

Answer: Option 10. Purchase allowance is the price reduction granted by the seller to a buyer of defective or unacceptable merchandise.

N. Purchases discount

Answer: Option 1. Purchase discount is a cash discount granted from the view of the seller, indicated in the credit terms on the invoice.

O. Sales discount

Answer: Option 2. Sales discount is the cash discount granted, from the view point of the purchaser intended to encourage buyers to pay amounts owed earlier.

P. Selling expenses

Answer: Option 14. Selling expenses are the expenses of advertising merchandise, making sales and delivering goods to customers

Q. Shrinkage

Answer: Option 16. Shrinkage is the loss of inventory from theft and deterioration.

R. Single-step income statement

Answer: Option 4. Single-step income statement is an income statement format that lists cost of goods sold as another expense and shows only one subtotal for total expenses.

S. Trade discount

Answer: Option 3. Trade discount is a given percent deducted from the list price often granted to customers purchasing large quantities of merchandise.