Match the following terms with the appropriate definition.A. ShrinkageB. Credit periodC. Credit termsD. Purchase allowanceE. Discount periodF. Gross profitG. Periodic inventory systemH. Perpetual inventory systemI. Sales discountJ. Purchases discounts__1. An inventory accounting method that updates accounting records for each purchase and each sale of inventory.__2. An inventory accounting method that updates the accounting records for purchases and sales of inventory only at the end of a period.__3. 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.__4. The loss of inventory from theft and deterioration.__5. A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts

Question

owed earlier.__6. Price reduction granted by the seller to a buyer of defective or unacceptable merchandise.__7. A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.__8. The calculation of net sales minus cost of goods sold.__9. The description of the amounts and timing of payments from a buyer to a seller for a purchase.__10. The amount of time allowed before full payment is due.

What will be an ideal response?

Answer 1

1. H; 2. G; 3. E; 4. A; 5. J; 6. D; 7. I; 8. F; 9. C; 10. B