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Chapter 14: Purchasing and Inventory Vocabulary Review Flashcards | StudBud
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Chapter 14: Purchasing and Inventory Vocabulary Review
Chapter 14: Purchasing and Inventory Vocabulary Review
12 terms
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StudBud Administration
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43 plays
business math
Flashcards
12 cards
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Questions
12
Answers
1
The
trade discount rate
is
an amount off
the final price you pay
a percentage off
the amount that you save
2
For a business, the items in stock are called:
Inventory
Overstock
Issues
Stock room
3
An invoice with terms 2/10, n/30 is_________________________.
Is due in 30 days
Given a 10% cash discount
Is given 10 days to pay in full.
Is given 2 days to receive a cash disc
4
In this method the oldest inventory is sold first and the most recent purchases are left.
FIFO
Average cost
LIFO
Ending Inventory
5
A chain discount of 30/20 is given on an item, the net price rate is
(70%)(80%)
70%+80%
(30%)(20%)
30%+20%
6
In this method the most recently purchased items are sold first.
Average Cost
FIFO
LIFO
GIT
7
The cost associated with keeping inventory in stock is called
Valuing Inventory
FIFO
LIFO
Carrying Inventory
8
Which is NOT a method for valuing the inventory you have?
FIFO
LIFO
Average cost method
GIT
9
Cash discounts are given to encourage businesses to pay on time.
True
False
10
An invoice dated April 15 with terms of 3/15 EOM can receive the cash discount until this date.
April 30
May 3
April 15
May 15
11
The complement of 55% is
65%
54%
55%
45%
12
Receipts are items that are subtracted from the previous inventory.
TRUE
FALSE
