Match the Term to the Appropriate Definition

question 5

Multiple Choice

Match the term to the appropriate definition.There are more definitions than terms.
-Perpetual Inventory System

• A)The sum of beginning inventory and purchases for the period.
• B)Presents important subtotals,such as gross profit,to help distinguish core operating results from other,less significant items that affect net income.
• C)A term of sale indicating that goods are owned by the seller until they are delivered to the buyer.
• D)Sells goods that have been obtained from a supplier.
• E)Inventory records are updated every time inventory is bought,sold,or returned.
• F)A sales price reduction given to customers for prompt payment of their account balance.
• G)Inventory records are updated at the end of the accounting period.To determine how much merchandise has been sold,inventory must be physically counted at the end of the period.
• H)A term of sale indicating that goods are owned by the buyer the moment they leave the seller's premises.
• I)Sells services rather than physical goods.
• J)Assets acquired for resale to customers.

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Definitions:

Underground Economy

consists of unreported income from the production of legal goods and services, either due to tax avoidance or the desire to avoid government regulations.

Gross Domestic Product

The total valuation in terms of money or market prices of all goods and services completed within a country’s borders within a specified time period.

Gross Domestic Product

Often abbreviated as GDP, Gross Domestic Product measures the total economic output of a country, including the monetary value of all goods and services produced within its borders in a specific timeframe.

Gross Domestic Product

The entire monetary or market valuation of all last-stage goods and services produced inside the borders of a country over a given time period.