Listed Below Are Four Terms Followed by a List of Phrases

question 163

Multiple Choice

Listed below are four terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term placing the letter designating the term in the space provided.
-_____ Indicates that title to inventory transfers from the seller to the buyer once it reaches the buyer.

• A)FOB shipping point
• B)FOB destination
• C)Periodic inventory system
• D)Perpetual inventory system

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Definitions:

Plant Asset

Long-lived, tangible assets used in the operations of a business, typically including buildings, machinery, and equipment.

Trade-in Allowance

The value offered by a seller for a buyer's existing asset as part of the payment for a new asset.

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense over the asset's useful life.

Cost Basis

The original value or purchase price of an asset or investment for tax purposes, adjusted for stock splits, dividends, and return of capital distributions.