Match each of the following terms (a-h) with the correct definition below. Clear All 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. Periodic inventory system Statement where net income is determined by deducting all expenses from all revenues. Multiple-step income statement Inventory system that updates the merchandise inventory account for every purchase and sale transaction. FOB shipping point Payment arrangements determined by the seller as to when invoices are due and whether early payment discount is offered. Perpetual inventory system Shipping terms where the ownership of merchandise passes to the buyer when the seller delivers the merchandise to the freight carrier. FOB destination Inventory shrinkage Statement that includes subtotals for net sales, gross profit, and net operating income in determining net income. Single-step income statement Losses of inventory due to theft, damage, spoilage, etc. that cause the actual inventory on hand to be less than that on record. Credit terms Shipping terms where the ownership of merchandise passes to the buyer when the buyer receives the merchandise