Match the Terms Below with the Correct Definitions

question 13

Multiple Choice

Match the terms below with the correct definitions.
-An inventory system that debits Purchases when goods are bought

• A)Unearned Revenue
• B)Income Summary
• C)First merchandise inventory adjusting entry (periodic system)
• D)Beginning merchandise inventory
• E)Ending merchandise inventory
• F)Periodic inventory system
• G)Wages Payable
• H)Wages Expense
• I)Purchases
• J)Second merchandise inventory adjusting entry (periodic system)

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Definitions:

Dividend Payout

A portion of a company's earnings that is distributed to shareholders.

External Financing Needed

The additional funding a firm requires to finance its spending plans, such as investments in fixed assets or increases in working capital, beyond what can be funded by internal sources.

Dividend Payout Ratio

A metric indicating the proportion of a company's net profits paid out to its shareholders as dividends.

Profit Margin

A financial performance ratio that shows the percentage of profit a company produces from its total revenue.