Matching Quiz

Match the terms listed below, with the appropriate desciption from the list on the right.


1				Cash discount


2				Classified, multiple-step income statement


3				Cost of goods sold


4				Credit memorandum


5				Credit period


6				Credit terms


7				Debit memorandum


8				Discount period


9				EOM


10				FOB


11				General and administrative expenses


12				Goods and Services Tax (GST)


13				Gross margin


14				Gross profit


15				Gross profit ratio


16				List price


17				Merchandise


18				Merchandise inventory


19				Merchandiser


20				Periodic inventory system


21				Perpetual inventory system


22				Provincial Sales Tax (PST)


23				Purchase discount


24				Purchase returns and allowances


25				Retailer


26				Sales discount


27				Sales returns and allowances


28				Selling expenses


29				Shrinkage


30				Single-step income statement


31				Trade discount


32				Transportation-in


33				Transportation-out


34				Wholesaler

Answer choices for questions 1 through 34

A)	The catalogue price of an item before any trade discount is deducted. (p. 270)
B)	A method of accounting that maintains continuous records of the cost of inventory on hand and the cost of goods sold. (p. 266)
C)	A term used by a purchaser to describe a cash discount granted to the purchaser for paying within the discount period. (p. 270)
D)	A middleman that buys products from manufacturers or wholesalers and sells them to consumers. (p. 264)
E)	Inventory losses that occur as a result of shoplifting or deterioration. (p. 278)
F)	The description of the amounts and timing of payments that a buyer agrees to make in the future. (p. 270)
G)	Products that a company owns for the purpose of selling them to customers. (p. 265)
H)	A consumption tax applied on sales to the final consumers of products and/or services. (p. 306)
I)	The expenses of promoting sales by displaying and advertising the merchandise, making sales, and delivering goods to customers. (p. 282)
J)	An income statement format that shows intermediate totals between sales and net income and detailed computations of net sales and cost of goods sold. (p. 282)
K)	A notification that the sender has entered a debit in the recipient's account maintained by the sender. (p. 269)
L)	The abbreviation for free on board, the designated point at which ownership of goods passes to the buyer; FOB shipping point (or factory) means that the buyer pays the shipping costs and accepts ownership of the goods at the seller's place of business; FOB destination means that the seller pays the shipping costs and the ownership of the goods transfers to the buyer at the buyer's place of business. (p. 272)
M)	The difference between net sales and the cost of goods sold; also called gross profit. (p. 265)
N)	The difference between net sales and the cost of goods sold; also called gross margin. (p. 265)
O)	Earns net income by buying and selling merchandise. (p. 264)
P)	The abbreviation for end of month, used to describe credit terms for some transactions. (p. 270)
Q)	Expenses that support the overall operations of a business and include the expenses of such activities as providing accounting services, human resource management, and financial management. (p. 282)
R)	The cost to the purchaser to transport merchandise purchased to the purchaser; transportation-in is part of Cost of Goods Sold. (p. 273)
S)	The cost to the seller to transport merchandise sold to the customer, transportation-out is a selling expense. (p. 273)
T)	The time period that can pass before a customer's payment is due. (p. 270)
U)	A reduction below a list or catalogue price that may vary in amount for wholesalers, retailers, and final consumers. (p. 270)
V)	The cost of merchandise sold to customers during a period. (p. 264)
W)	Gross profit from sales (net sales minus cost of goods sold) divided by net sales; also called gross margin ratio. (p. 285)
X)	A contra revenue account in which sales returns and/or sales allowances are recorded. (p. 276)
Y)	A reduction in the price of merchandise that is granted by a seller to a purchaser in exchange for the purchaser paying within a specified period of time called the discount period. (p. 270)
Z)	Products, also called goods, that a company acquires for the purpose of reselling them to customers. (p. 264)
AA)	A contra expense account used when a periodic inventory system is in place in which purchase returns and/or purchase allowances are recorded. (p. 294)
AB)	A notification that the sender has entered a credit in the recipient's account maintained by the sender. (p. 277)
AC)	A term used by a seller to describe a cash discount granted to customers for paying within the discount period. (p. 275)
AD)	A middleman that buys products from manufacturers or other wholesalers and sells them to retailers or other wholesalers. (p. 264)
AE)	A federal tax on almost all goods and services provided in Canada. (p. 306)
AF)	A method of accounting that records the cost of inventory purchased but does not track the quantity on hand or sold to customers; the records are updated at the end of each period to reflect the results of physical counts of the items on hand. (p. 267)
AG)	The time period in which a cash discount is available and a reduced payment can be made by the buyer. (p. 270)
AH)	An income statement format that includes cost of goods sold as an operating expense and shows only one subtotal for total expenses. (p. 284)

Your Results:

E-mail Your Results