Unit 2 - Quiz 3

This term refers to goods acquired by the business for the purpose of resale to consumer

• Operations

• Merchandise

• Products

It is prepared by the seller of goods and sent to the buyer

• Official receipt

• Sales invoice

• Bill of lading

It is given to encourage consumer to pay their accounts promptly

• Cash discounts

• Trade discounts

• Sales discounts

This inventory system is commonly used by the business with relatively sell inexpensive or low valued goods, only at the end of period when the inventory is counted

• Perpetual

• Periodic

• Primary

It is a formal notice to the debtor detailing the accounts already due

• Sales invoice

• Bill of lading

• Statement of account

The cash discounts from the buyer’s point of view is called _______.

• sales discounts

• purchase discounts

• trade discounts

When the buyer shoulders the shipping costs, the freight term is known as ________.

• FOB shipping point

• FOB destination

• Freight prepaid

This inventory system updates the inventory account at the time of purchase and time of sale

• Perpetual

• Periodic

• Primary

When the seller pays the transportation costs before shipping the goods sold, it is known as ________.

• Freight collect

• Freight prepaid

• Freight terms

The entity issuing the check is the payor, while the receiver is the _______.

• payer

• payor

• payee