Match each of the following term (a-h) with the correct definition below.

a. Credit terms

b. FOB destination

c. FOB shipping point

d. Periodic inventory system

e. Perpetual inventory system

f. Inventory shrinkage

g. Single-step income statement

h. Multiple-step income statement

1. Shipping terms where the ownership of merchandise passes to the buyer when the buyer receives the merchandise.

2. Losses of inventory due to theft, damage, spoilage, etc. that cause the actual inventory on hand to be less than that on record.

3. Statement where net income is determined by deducting all expenses from all revenues.

4. Payment arrangements determined by the seller as to when invoices are due and whether early payment discount is offered.

5. Inventory system that updates the merchandise inventory account for every purchase and sale transaction.

6. Inventory system that updates the merchandise inventory account only at the end of the accounting period based on a physical count of merchandise on hand.

7. Statement that includes subtotals for net sales, gross profit, and net operating income in determining net income.

8. Shipping terms where the ownership of merchandise passes to the buyer when the seller delivers the merchandise to the freight carrier.