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18 Cards in this Set
- Front
- Back
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Sells services rather than physical goods
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Service Company
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A ratio indicating the percentage of profit earned on each dollar of sales, after considering the cost of products sold
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Gross Profit Percentage
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A term sale indicating that goods are owned by the customer the moment they leave the seller's premises
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FOB Shipping Point
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An internal report prepared to verify the accuracy of both the bank statement and the cash accounts of a business or individual
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Bank Reconciliation
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Presents important subtotals to help distinguish core operating results from other less significant items that affect net income
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Multistep Income Statement
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Methods to protect against theft of assets
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Internal Controls
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A sales price reduction given to customers for prompt payment of their account balance
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Sales Discounts
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Inventory records that are updated at the end of the accounting period
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Periodic Inventory System
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An internal control that involves separating employees' duties so that the work of one person can be used to check the work of another person
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Segregation of Duties
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Sells goods that it has made itself
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Manufacturing Company
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Inventory records that are updated every time inventory is bought, sold, or returned
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Perpetual Inventory System
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Refunds and price reductions given to customers after goods have been sold and found unsatisfactory
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Sales Returns and Allowances
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Short-term, highly liquid investments purchased within three months of maturity
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Cash Equivalents
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Another name for bounced checks (non-sufficient funds)
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NSF
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A term of sale indicating that goods are owned by the seller until they are delivered to the customer
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FOB Destination
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Sells goods that have been obtained from a supplier
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Merchandising Company
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Equals net sales minus cost of goods sold. it is a subtotal, not an account
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Gross Profit
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Money or any instrument that banks will accept for deposit and immediately credit to a company's account
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Cash
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