Match the Terms with the Descriptions Related to Merchandise Sales

question 70

Multiple Choice

Match the terms with the descriptions related to merchandise sales and purchases.
-Shipping costs paid to acquire merchandise.

• A)Transportation-in
• B)Perpetual inventory system
• C)Net purchasesd.
• D)FOB Destination
• E)Cost of goods available for sale
• F)Periodic inventory system
• G)FOB Shipping point
• H)Delivery expense

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Definitions:

Capital Structure

The mix of various types of debt and equity that a company uses to finance its operations.

Tax Rate

The proportion of one's earnings or company profits that is required to be paid as tax.

Degree Of Financial Leverage (DFL)

A measure that evaluates the sensitivity of a company's earnings per share to fluctuations in its operating income, indicating financial risk.

Interest

The return on a debt investment.