Dan Missed Class the Day the Professor Covered the Circular

question 97

Multiple Choice

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

• A) requires a physical location for buyers and sellers to get together.
• B) is any arrangement that brings buyers and sellers together.
• C) must include a written contract between buyers and sellers.
• D) is only a place to purchase groceries.
• E) must have many buyers and only one seller, who is willing to sell to all the buyers.

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Definitions:

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and shipping costs from the point of origin.

Perpetual Inventory System

An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Debit Memo

A document issued to record a reduction in the balance due from a customer, often due to a return or correction.

Gross Profit

The difference between revenue and the cost of goods sold before expenses.