Match the Term with Its Definition

question 120

Multiple Choice

Match the term with its definition. Some terms may not be used.
-A method that provides for periodic counting of items in inventory

• A)ABC method
• B)Associative forecasting
• C)Cooperative purchasing organization
• D)Cycle counting
• E)Demand management strategies
• F)Economic order quantity
• G)Just-in-time inventory system
• H)Perpetual inventory system
• I)Physical inventory system
• J)Poka-yoke
• K)Statistical inventory control
• L)Two-bin inventory system

---

Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thus preparing the books for the next period.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period, transferring the net amount to retained earnings.

Sales Returns

Transactions where customers return defective, unsatisfactory or unwanted products back to the seller, resulting in a reversal of revenue.

Accounts Receivable

Financial obligations of customers towards a business for delivered but unpaid goods or services.