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18 Cards in this Set

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FOB (Free on Board) Shipping Point
Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination.
FOB (Free on Board) Destination
Freight terms in which the seller pays the transportation costs from the shipping point to the final destination.
Purchase Discounts
Discounts taken by the buyer for early payment of an invoice.
Purchase Return or Allowance
From the buyer's perspective, returned merchandise or an adjustment for defective merchandise.
Selling Expenses
Expenses that are incurred directly in the selling of merchandise.
Sales Returns and Allowances
From the seller's perspective, returned merchandise or an adjustment for damaged or defective merchandise.
Sale Discounts
From the seller's perspective, discounts that a seller can offer the buyer for early payment.
Physical Inventory
A detailed listing of the merchandise for sale at the end of an accounting period.
Net Sales
Gross sales less sales returns and allowances and sales discounts.
Merchandise Inventory
Merchandise on hand (not sold) at the end of an accounting period.
Merchandise Available for Sale
The cost of merchandise available for sale to customers.
Loss From Operations
The excess of operating expenses over gross profit.
Inventory Shrinkage
The amount by which the merchandise for sale, as indicated by the balance of the merchandise inventory account, is larger than the total amount of merchandise counted during the physical inventory.
Indirect Method
A method of preparing the statement of cash flows that reconciles net income with net cash flows from operationg activities.
Income from Operations
The excess of gross profit over total operating expenses.
Gross Profit
Sales minue the cost of the merchandise sold.
Cost of Merchandise Sold
The cost that is reported as an expense when merchandise is sold.
Controlling Account
The account in the general ledger that summarizes that balances of the accounts in the subsidiary ledger.