Match the Terms with the Definitions

question 92

Multiple Choice

Match the terms with the definitions.
-A registered trade name or symbol that identifies a firm's merchandise.

• A)Accelerated Cost Recovery System (ACRS)
• B)accelerated depreciation methods
• C)amortization
• D)trademark
• E)cash equivalent price
• F)long-term assets
• G)copyright
• H)cost
• I)patent
• J)depreciable cost (base)
• K)depreciation
• L)physical depreciation
• M)tangible assets
• N)sum-of-the-years'-digits method
• O)salvage value
• P)property, plant, and equipment

Understand the differences between merchandising and service companies in generating net income.

Grasp the concept of merchandise inventory, its reporting, and its role in a merchandising company's operating cycle.

Learn the importance of sales terms and conditions, including the FOB shipping point and destination, purchase discounts, allowances, and returns in managing revenues and expenses.

Understand the calculation and interpretation of financial ratios like the gross margin ratio to evaluate a company's operational efficiency.

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Definitions:

Contribution Rate

The percentage of income that is saved or contributed to a retirement plan by an individual or employer.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales. Examples include rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs of goods sold or raw material expenses.

Break-Even Revenue

The amount of income needed to cover all operating expenses, with no profit or loss.