Chapter 5, Problem 1QS

QUICK STUDY

Applying merchandising terms C1 P1

Enter the letter for each term in the blank space beside the definition that it most closely matches.

A. Sales discount

B. Credit period

C. Discount period

D. FOB destination

E. FOB shipping point

F. Gross profit

G. Merchandise inventory

H. Purchases discount

______ 1. Goods a company owns and expects to sell to its customers.

_______ 2. Time period that can pass before a customer's full payment is due.

_______ 3. Seller's description of a cash discount granted to buyers in return for early payment.

_______ 4. Ownership of goods is transferred when the seller delivers goods to the carrier.

_______ 5. Purchaser's description of a cash discount received from a supplier of goods.

_______ 6. Difference between net sales and the cost of goods sold.

_______ 7. Time period in which a cash discount is available.

_______ 8. Ownership of goods is transferred when delivered to the buyer's place of business.