Reference no: EM132359609

Question

1. Match the following definitions and terms by placing the letter for the terms A through J in the blank space next to the best definition.

A. Trade discount F. Acid-test ratio

B. General and administrative expenses G. Merchandise inventory

C. FOB shipping point H. Selling expenses

D. Single-step income statement I. Multiple-step income statement

E. FOB destination J. Inventory shrinkage

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1. A measure of a company's ability to pay its current liabilities that excludes less liquid current assets such as inventory and prepaid expenses.

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2. A widely used income statement format that lists cost of goods sold as another expense and shows only one subtotal for total expenses.

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3. The point of transfer from seller to buyer that takes place when the goods arrive at the buyer's place of business.

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4. Products a company owns and intends to sell.

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5. The expenses that support a company's overall operations and include costs related to accounting, human resource management and financial management.

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6. The point of transfer from seller to buyer that takes place when goods depart the seller's place of business.

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7. Inventory losses that can occur as a result of theft or deterioration and require an adjusting entry to account for those losses.

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8. An income statement format that shows detailed computations of net sales and other costs and expenses, and reports subtotals for various classes of items.

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9. A given percent deducted from a list price often granted to customers purchasing large quantities of merchandise.

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10. The expenses of promoting sales by displaying and advertising merchandise, making sales, and delivering goods to customers.