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17 Cards in this Set
- Front
- Back
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Contra Revenue Account:
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An account that is offset against a revenue acount on the income statement.
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Cost of Goods Sold:
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The total cost of merchandise sold during the period.
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Gross Profit:
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The excess of net sales over the cost of goods sold.
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Gross Profit Rate:
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Gross profit expressed as a percentage by dividing the amount of gross profit by net sales.
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Net Sales:
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Sales less sales returns and allowances and sales discounts.
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Periodic Inventory System:
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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.
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Periodic Inventory System:
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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.
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Perpetual Inventory System:
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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.
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Profit Margin Ratio:
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Measures the percentage of each dollar of sales that results in net income, computed by dividng net income by net sales.
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Purchase Allowance:
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A deduction made to the selling price of merchandis, granted by the seller so that the buyer with keep the merchandise.
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Purchase Discount:
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A cash discount claimed by a buyer for propmt payment of a balance due.
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Purchase Invoice:
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A document that supports each credit purchase.
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Purchase Return:
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A return of goods from the buyer to the seller for cash or credit.
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Sales Discount:
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A reduction given by a seller for prompt payment of a credit sale.
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Sales Invoice:
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A document that provides support for the sales credit.
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Sales Returns & Allowances:
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Purchase returns and allowances from theseller's perspective.
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Sales Revenue:
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Primary source of revenue in a merchandising company.
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