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30 Cards in this Set

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The form of balance sheet in which assets are reported on the left-handed side and the liabilites and stockholder's equity on the right-handed side.
account form
A form of income statement that contains several sections, subsections, and subtotals.
multiple-step income statement
Expenses incurred in the administration or general operations of the business.
administrative expenses(general expenses)
A ledger containing individual accounts with a common characteristic.
subsidary ledger
The primary ledger, when used in conjunction with subsidary ledgers, that contains all of the balance sheet and income statement accounts.
general ledger
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.
inventory shrinkage
The account in the general ledger that summarizes the balances of the accounts in a subsidiary ledger.
controlling account
From the seller's perspective, returned merchandise or an adjustment for defective merchandise.
purchases return or allowance
The cost that is reported as an expense when merchandise is sold.
cost of merchandise sold
A detailed listing of the merchandising for sale at the end of an accounting period.
Physical inventory
Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination.
FOB(free on board) shipping point
The excess of operating expenses over gross profit.
loss from operations
A form used by a buyer to inform the seller of the amount the buyer proposes to debit to the account payable due the seller.
debit memorandum
Expenses that are incurred directly in the selling of merchandise.
selling expenses
Sales minus the cost of merchandise sold.
gross profit
From the buyer's perspective, returned merchandise or an adjustment for defective merchandise.
sales return or allowance
A form used by a seller to inform the buyer of the amount the seller proposes to credit to the account receivable due from the buyer.
credit memorandum
The inventory system in which the inventory records do not show the amount available for sale or sold during the period.
perpetual inventory system
Freight therms in which the seller pays the transportation costs from the shipping point to the final destination.
FOB(free on board) destination
The inventory system in which each purchase and sale of merchandise is recorded in an inventory account.
periodic inventory system
From the seller's perspective, discounts that a seller may offer the buyer for early payment.
Purchase discounts
Revenue from sources other than the primary operating activity of a business.
other income
A form of income statement in which the total of all expenses is deducted from the total of all revenues.
single-step income statement
The bill that the seller sends to the buyer.
invoice
Discounts taken by the buyer for early payment of an invoice.
sales discounts
The excess of gross profit over total operating expenses.
income from operations(operating income)
Expenses that cannot be traced directly to operations.
other expense
Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers.
trade discounts
Merchandise on hand (not sold) at the end of an accounting period.
merchandise inventory
The form of balance sheet in which assets,liabilities, and stockholder's equity are reported in a downward sequence.
report form