INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 24

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-The gift tax law allows a person to give gifts up to [$10,000 | $13,000] tax free.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Merchandise Purchased

Goods bought by a business for the purpose of resale, forming part of its inventory.

Cost Of Goods Available

The total cost of all merchandise or materials available for sale or use, including beginning inventory plus purchases.

Purchase Returns

Goods returned by the buyer to the supplier due to defects, inaccuracies in shipment, or other discrepancies.

Allowances

A deduction from the gross amount on an invoice by the buyer for goods purchased or to cover some type of shortcoming.