Matching Referring to the items listed below, place the appropriate letter next to the corresponding description.

a. FOB shipping point

f. Freight collect

k. Debit

b. Freight prepaid

g. Purchase discounts

l. Cost of goods sold

c. Chain discount

h. Operating revenues

m. Gross margin

d. Sales discounts

i. Nonoperating revenues

n. Selling expenses

e. FOB destination

j. Credit

o. Adminstrative

__1. The term used when the buyer incurs all transportation costs after the merchandise is loaded at the point of shipment.

__2. This term is used when the buyer pays the freight bill upon arrival of the goods.

__3. This term is applied when a list price is subject to several trade discounts.

__4. Cash discounts as recorded on the books of the buyer.

__5. The term used when goods are shipped to their destination without charge to the buyer.

__6. This term is used when the seller pays the freight at the time of shipment.

__7. Revenues generated by the major activities of the business.

__8. The term used when the seller bears all the transportation charges.

__9. The normal balance of the Purchase Discounts account.

__10. Net Sales - Cost of Goods Sold

__11. Expenses incurred in performing and facilitating the marketing effort.

__12. Beginning inventory + Net purchases - Ending inventory

__13. Operating expenses incurred in the overall management of a business.

14. Advertising Expense, Warehousing and Handling Expense, and Salaries Expense - Marketing Managers are grouped into this category.

15. Are deducted along with purchase returns and allowances from gross purchases to arrive at net purchases.