Match the Following Definitions with the Appropriate Terms

question 111

Multiple Choice

Match the following definitions with the appropriate terms.
-Inventory losses that can occur as a result of theft or deterioration and require an adjusting entry to account for those losses.

• A)Single-step income statement
• B)Acid-test ratio
• C)Multiple-step income statement
• D)Inventory shrinkage
• E)FOB shipping point
• F)Selling expenses
• G)General and administrative expenses
• H)Merchandise inventory
• I)Trade discount
• J)FOB destination

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Definitions:

Reportable Segments

Refers to components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance.

AASB 8 Operating Segments

A standard that requires an entity to disclose information about its operating segments, products and services, the geographical areas in which it operates, and its major customers.