Match the Terms with the Descriptions Related to Merchandise Sales

question 33

Multiple Choice

Match the terms with the descriptions related to merchandise sales and purchases.
-Collected cash from a customer for payment within the discount period.

• A)Transportation-in
• B)Perpetual inventory system
• C)Net purchases
• D)FOB destination
• E)Cost of goods available for sale
• F)Periodic inventory system
• G)FOB shipping point
• H)Delivery expense

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Definitions:

C Corporation

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.

Return

A document containing details about an individual's or entity's income, deductions, and tax liabilities filed with the tax authorities.

Basis

The initial value of an asset for tax purposes, used to calculate depreciation, amortization, and determines the gain or loss on the asset's sale.

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company's assets and earnings.