MATCHING Match each term with the correct definition. a.Equity income b.Discount c.Matching principle d.Warranty costs e.FOB shipping point f.Deferred compensation cost g.FOB...

MATCHING

Match each term with the correct definition.

a.Equity income

b.Discount

c.Matching principle

d.Warranty costs

e.FOB shipping point

f.Deferred compensation cost

g.FOB destination

h.Revenue recognition

1.Results when a company agrees to pay retirement benefits

2.Requires recognition of expenses in the period that related revenue is recognized

3.The income that a company earns using the equity method of accounting for investments in other companies.

4.A reduction in the normal sales price

5.Usually occurs when goods are transferred or services rendered to customers

6.Ownership is transferred to the customer when goods are delivered

7.The cost of replacing or repairing defective products

8.Ownership is transferred to the customer when goods are transferred to a freight company