Match each of the following term (a-h) with the correct definition below.

a. Credit terms

b. FOB destination

c. FOB shipping point

d. Periodic inventory system

e. Perpetual inventory system

f. Inventory shrinkage

g. Single-step income statement

h. Multiple-step income statement

1. Account used to record inventory on hand under a perpetual inventory system.

2. Discount to government agencies or customers who purchase large quantities of merchandise.

3. The cost associated with delivery of merchandise to the customer when seller pays cost.

4. Early payment discount offered to customers by the seller.

5. Losses of inventory due to theft, damage, spoilage, etc. that cause the actual inventory on hand to be less than that on record.

6. Statement where net income is determined by deducting all expenses from all revenues.

7. Statement that includes subtotals for net sales, gross profit, and net operating income in determining net income.

8. Shipping terms where the ownership of merchandise passes to the buyer when the seller delivers the merchandise to the freight carrier.

Answer rating: 100% (QA)

Match the items with the appropriate definition in the following manner Definition Item ... View the full answer