Match the Terms to the Definitions by Selecting the Letter

question 1

Multiple Choice

Match the terms to the definitions by selecting the letter of the term.Each term may be used more than once or not at all.
-Allows preferred stock to be returned to the corporation in exchange for common stock.

• A)cumulative feature
• B)stock dividend
• C)retired stock
• D)retained earnings
• E)callable feature
• F)convertible feature
• G)outstanding shares
• H)treasury stock
• I)participating feature
• J)additional paid-in capital

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Definitions:

Periodic Inventory System

A method of inventory management where updates to inventory levels are made at specific intervals, typically at the end of an accounting period, rather than continuously.

Inventory Shipped on Consignment

Goods sent by a vendor (consignor) to a consignee, which are held by the consignee until sold; the consignor retains ownership until the goods are sold.

Consignee

The individual or entity that is legally permitted to receive goods but does not have ownership rights over the cargo until the consignment is paid for or sold.

LIFO Cost Flow Assumption

A method in accounting that assumes the last items of inventory purchased are the first ones sold.