Match each phrase with its definition. 1. Seller's description of a cash discount granted to buyers in return for early payment. 2. The amount of time allowed by a seller before payment is due from the buyer. 3. Time period in which a cash discount is available. 4. Refers to credit terms where goods in transit are owned by the seller. 5. Refers to credit terms where goods in transit are owned by the buyer. 6. Calculated as net sales minus cost of goods sold. 7. A current asset that includes the cost to buy goods and make them ready for sale. 8. Purchaser's description of a cash discount received from a supplier of goods.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Match each phrase with its definition.
1. Seller's description of a cash discount granted to buyers in return for early payment.
2. The amount of time allowed by a seller before payment is due from the buyer.
3. Time period in which a cash discount is available.
4. Refers to credit terms where goods in transit are owned by the seller.
5. Refers to credit terms where goods in transit are owned by the buyer.
6. Calculated as net sales minus cost of goods sold.
7. A current asset that includes the cost to buy goods and make them ready for sale.
8. Purchaser's description of a cash discount received from a supplier of goods.
Transcribed Image Text:Match each phrase with its definition. 1. Seller's description of a cash discount granted to buyers in return for early payment. 2. The amount of time allowed by a seller before payment is due from the buyer. 3. Time period in which a cash discount is available. 4. Refers to credit terms where goods in transit are owned by the seller. 5. Refers to credit terms where goods in transit are owned by the buyer. 6. Calculated as net sales minus cost of goods sold. 7. A current asset that includes the cost to buy goods and make them ready for sale. 8. Purchaser's description of a cash discount received from a supplier of goods.
in.
s in return for early payment.
:is due from the buyer.
FOB shipping point
i by the seller.
Gross profit
i by the buyer.
Merchandise inventory
Purchases discount
make them ready for sale.
ma supplier of goods.
Sales discount
Transcribed Image Text:in. s in return for early payment. :is due from the buyer. FOB shipping point i by the seller. Gross profit i by the buyer. Merchandise inventory Purchases discount make them ready for sale. ma supplier of goods. Sales discount
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