Match Each of the Following Items (A-H) with the Appropriate

question 120

Multiple Choice

Match each of the following items (a-h) with the appropriate definition below.
-Account used to record inventory on hand under a perpetual inventory system.

• A)Freight
• B)Delivery Expense
• C)Inventory
• D)Sales discount
• E)Purchases Returns and Allowances
• F)Debit memo
• G)Purchases discount
• H)Trade discount

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Definitions:

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction, without them necessarily being involved in the transaction.

Marginal Social Benefit

Sum of the marginal private benefit plus the marginal external benefit.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.

Abatement

The reduction or removal of environmental pollutants or negative externalities to improve environmental quality.