Match the Terms with the Definitions

question 7

Multiple Choice

Match the terms with the definitions.
-An alphabetical or numerical listing of supplier accounts and balances, usually prepared at the end of the month.

• A)accounts payable ledger
• B)cost of goods sold
• C)FOB destination
• D)FOB shipping point
• E)gross profit
• F)purchase invoice
• G)purchase order
• H)purchase requisition
• I)purchases
• J)receiving report
• K)schedule of accounts payable
• L)trade discount

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Definitions:

Solvency

The ability of a company to meet its long-term financial obligations and continue its operations indefinitely.

Fair Value

The price at which an asset or liability could be exchanged between willing parties in an arm's length transaction.

Treasury Stock

Stock that was issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Shareholders' Equity

The residual interest in the assets of a company after deducting all its liabilities, representing what the shareholders own outright.