Directions: Choose the Best Answer Based on the Information You

question 2

True/False

Directions: Choose the best answer based on the information you read in Chapter 10.
​ Realistic narrative paragraphs include more telling details and fewer showing details.

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Definitions:

Gross Method

An accounting method for recording purchases at the gross invoice amount before deducting any cash discounts for early payment.

Credit Terms

Conditions under which credit will be extended to a borrower, including the amount of credit, interest rate, and repayment schedule.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the cost of transporting the goods from the shipping point.

Invoice Amount

The total sum of money requested by a vendor from a purchaser for goods delivered or services provided.