Match the Term to the Appropriate Definition

question 173

Multiple Choice

Match the term to the appropriate definition.There are more definitions than terms.
-Goods Available for Sale

• A)A ratio indicating the percentage of profit earned on each dollar of sales,after considering the cost of products sold.
• B)A sales price reduction given to customers for prompt payment of their account balance.
• C)Presents important subtotals,such as gross profit,to help distinguish core operating results from other,less significant items that affect net income.
• D)Expresses the relationship between inventory on hand,purchased,and sold;shown as either BI + P - EI = CGS or BI + P - CGS = EI.
• E)Refunds and price reductions given to customers after goods have been sold and found unsatisfactory.
• F)A cash discount received for prompt payment of a purchase on account.
• G)The cost of inventory lost to theft,fraud,and error.
• H)Net sales minus cost of goods sold.It is a subtotal,not an account.
• I)A reduction in the cost of inventory purchases associated with unsatisfactory goods.
• J)The sum of beginning inventory and purchases for the period.

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Definitions:

Economic Profit

The financial gain achieved by a firm or individual after deducting both explicit (direct) and implicit (indirect, such as opportunity costs) costs from total revenues.

Investment

Committing funds to assets with the goal of earning returns over time.

Interest Rate

The percentage charged on the total amount borrowed or earned on investments, representing the cost of borrowing or the gain on saved or invested money.

Capital Market

Refers to financial markets where long-term debt or equity-backed securities are bought and sold.