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14 Cards in this Set
- Front
- Back
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Purchase Transactions |
Back (Definition) |
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Freight in |
Answer |
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Freight out |
Answer |
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Cost of goods sold |
Beginning Inventory + cost of goods purchases +freight in -purchase returns allowances - purchase discounts = cost of good avail for sale - ending inventory = cost of goods sold |
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Profit Margin |
Net income / Net Sales |
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Gross Profit Rate |
Gross Profit / Net Sales |
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Cost of Good Sold Section |
Back (Definition) |
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Accounts needed for inventory merchandizing inventory |
Cash Accts Receivable Inventory Accounts payable Common stock Sales Revenue Sales Returns and allowances Costs of goods sold |
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Perpetual |
Better control over inventories then periodic system |
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FOB supply point |
Ownership passes at shipping point |
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FOB destination |
Seller pays freight costs |
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Purchase Transactions |
Back (Definition) |
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Multi step income statement |
Net sales - cost of good sold Gross Profit - operating expenses Income from operations - expenses not related Net income |
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Net sales |
Sale - returns - allowances |
