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17 Cards in this Set

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Contra Revenue Account:
An account that is offset against a revenue acount on the income statement.
Cost of Goods Sold:
The total cost of merchandise sold during the period.
Gross Profit:
The excess of net sales over the cost of goods sold.
Gross Profit Rate:
Gross profit expressed as a percentage by dividing the amount of gross profit by net sales.
Net Sales:
Sales less sales returns and allowances and sales discounts.
Periodic Inventory System:
An inventory system in which detailed records of goods on hand are not maintained and the cost of goods sold is determined only at the end of an accounting period.
Periodic Inventory System:
An inventory system in which detailed records of goods on hand are not maintained and the cost of goods sold is determined only at the end of an accounting period.
Perpetual Inventory System:
A detailed inventory system in which the ocst of each inventory item is maintained and the records continuously show the inventory that should be on hand.
Profit Margin Ratio:
Measures the percentage of each dollar of sales that results in net income, computed by dividng net income by net sales.
Purchase Allowance:
A deduction made to the selling price of merchandis, granted by the seller so that the buyer with keep the merchandise.
Purchase Discount:
A cash discount claimed by a buyer for propmt payment of a balance due.
Purchase Invoice:
A document that supports each credit purchase.
Purchase Return:
A return of goods from the buyer to the seller for cash or credit.
Sales Discount:
A reduction given by a seller for prompt payment of a credit sale.
Sales Invoice:
A document that provides support for the sales credit.
Sales Returns & Allowances:
Purchase returns and allowances from theseller's perspective.
Sales Revenue:
Primary source of revenue in a merchandising company.