Matching
Match the following definitions with the appropriate term
Premises:
An inventory accounting method that continually updates accounting records for inventory available for sale and inventory sold.
An inventorv accounting method that updates the accounting records for merchandise transactions only at the end of a period.
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.
A notification that informs the seller of a debit made to the seller's account payable in the buyer's records.
A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier.
A notification that informs a buyer of a seller's credit to a buyer's account.
A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.
The calculation of net sales less cost of goods sold.
The description of the amounts and timing of payments from a buyer to a seller for a purchase.
The amount of time allowed before full payment is due.
Responses:
Debit memorandum
Credit period
Credit terms
Credit memorandum
Discount period
Gross profit
Periodic inventory system
Perpetual inventory system
Sales discount
Purchase discount
Correct Answer:
Premises:
Responses:
An inventory accounting method that continually updates accounting records for inventory available for sale and inventory sold.
An inventorv accounting method that updates the accounting records for merchandise transactions only at the end of a period.
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.
A notification that informs the seller of a debit made to the seller's account payable in the buyer's records.
A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier.
A notification that informs a buyer of a seller's credit to a buyer's account.
A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.
The calculation of net sales less cost of goods sold.
The description of the amounts and timing of payments from a buyer to a seller for a purchase.
The amount of time allowed before full payment is due.
Premises:
An inventory accounting method that continually updates accounting records for inventory available for sale and inventory sold.
An inventorv accounting method that updates the accounting records for merchandise transactions only at the end of a period.
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.
A notification that informs the seller of a debit made to the seller's account payable in the buyer's records.
A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier.
A notification that informs a buyer of a seller's credit to a buyer's account.
A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.
The calculation of net sales less cost of goods sold.
The description of the amounts and timing of payments from a buyer to a seller for a purchase.
The amount of time allowed before full payment is due.
Responses:
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