Question

Select the term in the blank space beside the definition that it most closely matches.

Answer 1

Answer:

1. Merchandise inventory; 2. Credit Period; 3. Sales discount; 4. Trade discount; 5. FOB Shipping Point; 6. Purchase discount; 7. Cash discount; 8. Gross Profit; 9. Discount Period; 10. FOB Destination.

Explanation:

1. The inventory is a detailed, orderly and valued relationship of the elements that make up the assets of a company or person at a given time.
2. The credit period is the number of days after the beginning of the credit period until the full payment of the account is fulfilled.
3. The discount on sales is the value of the bonuses that on the sales price of the merchandise are granted to the. customers.
4. The commercial discount is a type of effect discount that consists of a short-term financing operation offered by financial institutions.
5. The FOB shipping point means "free on board" shipping point. This term describes orders for products that are paid at the origin of the product, which is the seller's shipping point, rather than the destination of the product. The FOB shipping point charges the buyer the shipping costs as soon as the seller starts shipping.
6. Discount on purchases is the reduction in the cost of stocks offered by the seller as an incentive for the customer to pay quickly.
7. Discounts for prompt payment - also known as cash discounts - are intended to encourage customers to pay their debts within a period of time previously agreed.
8. Gross profit is the value you get by subtracting the variable costs of your business from total income. Variable costs are expenses that change according to the volume of sales or production. When they increase, the former follow the same trend. If they fall, costs accompany the fall.
9. The discount period is the period in which you can take advantage of a discount for early payment.
10. FOB point of embarkation means that a transaction was made at the premises of the seller dock. The buyer pays all freight costs related to the goods purchased.