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    Accounting 310 problems: Matching terms and journal entries

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    Question 222
    Match the terms below by entering the appropriate code letter in the space provided.
    Income from operations
    Periodic inventory system
    Freight-out
    Gross profit
    Purchase invoice
    FOB shipping point
    Net sales
    FOB destination
    Operating expenses
    Sales discounts

    1 Expenses incurred in the process of earning sales revenue.
    2 Sales less sales returns and allowances and sales discounts.
    3 Net sales less cost of goods sold.
    4 Requires a physical count of goods on hand to compute cost of goods sold.
    5 An incentive to encourage customers to pay their accounts early.
    6 Freight terms that require the seller to pay the freight cost.
    7 Gross profit less total operating expenses.
    8 A document that supports each credit purchase.
    9 Freight terms that require the buyer to pay the freight cost.
    10 Freight cost to deliver goods to customers reported as a selling expense.

    Question 217
    Match the terms below by entering the appropriate code letter in the space provided.

    Accrued expenses
    Accrued revenues
    Revenue recognition principle
    Accumulated depreciation
    Expense recognition principle
    Depreciation
    Time period assumption
    Book value
    Prepaid expenses
    Fiscal year

    1 Expenses paid before they are incurred.
    2 Divides the economic life of a business into artificial time periods.
    3 A contra asset account.
    4 Revenues earned but not yet received.
    5 A twelve month accounting period.
    6 Cost less accumulated depreciation.
    7 Expenses incurred but not yet paid.
    8 Efforts are related to accomplishments.
    9 A cost allocation process.
    10 Revenue is recognized in the accounting period in which it is earned.

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    Solution Summary

    Question 222
    Match the terms below by entering the appropriate code letter in the space provided.
    Income from operations
    Periodic inventory system
    Freight-out
    Gross profit
    Purchase invoice
    FOB shipping point
    Net sales
    FOB destination
    Operating expenses
    Sales discounts

    1 Expenses incurred in the process of earning sales revenue.
    2 Sales less sales returns and allowances and sales discounts.
    3 Net sales less cost of goods sold.
    4 Requires a physical count of goods on hand to compute cost of goods sold.
    5 An incentive to encourage customers to pay their accounts early.
    6 Freight terms that require the seller to pay the freight cost.
    7 Gross profit less total operating expenses.
    8 A document that supports each credit purchase.
    9 Freight terms that require the buyer to pay the freight cost.
    10 Freight cost to deliver goods to customers reported as a selling expense.

    Question 217
    Match the terms below by entering the appropriate code letter in the space provided.

    Accrued expenses
    Accrued revenues
    Revenue recognition principle
    Accumulated depreciation
    Expense recognition principle
    Depreciation
    Time period assumption
    Book value
    Prepaid expenses
    Fiscal year

    1 Expenses paid before they are incurred.
    2 Divides the economic life of a business into artificial time periods.
    3 A contra asset account.
    4 Revenues earned but not yet received.
    5 A twelve month accounting period.
    6 Cost less accumulated depreciation.
    7 Expenses incurred but not yet paid.
    8 Efforts are related to accomplishments.
    9 A cost allocation process.
    10 Revenue is recognized in the accounting period in which it is earned.

    $2.19