QS 5-1 (Algo) Applying merchandising terms LO C1, P1 Match each phrase with its definition. 1. A type of business that earns income by buying and selling merchandise. 2. Purchaser's description of a cash discount received from a supplier of goods. 3. A current asset that includes the cost to buy goods and make them ready for sale. 4. Calculated as net sales minus cost of goods sold. 5. Refers to credit terms where goods in transit are owned by the buyer. 6. Refers to credit terms where goods in transit are owned by the seller. 7. Time period in which a cash discount is available. 8. The amount of time allowed by a seller before payment is due from the buyer.

QS 5-1 (Algo) Applying merchandising terms LO C1, P1 Match each phrase with its definition