Term
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Definition
| consists of products, goods that company acquires to resell to customers |
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Term
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Definition
earns net income by buying and selling merchandise
wholesalers or retailers |
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Term
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Definition
| an intermediary that buys products from manufacturers or other wholesalers and sell them to retails or other wholesalers |
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Term
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Definition
| intermediary that buys products from manufacturers or wholesalers and sells them to customers |
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Term
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Definition
cost of inventory sold to customers during a period
aka cost of sales |
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Term
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Definition
net sales minus cost of goods sold
aka called gross margin |
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Term
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Definition
| goods that company owns and expects to sell to customers |
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Term
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Definition
| refers to products a company owns and expects to sell in its normal operations |
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Term
| perpetual inventory system |
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Definition
| continually updates accounting records for merchandising transactions-specifically for those of inventory available for sale and inventory sold |
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Term
| periodic inventory system |
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Definition
| updates accounting records for merchandise transactions only at the end of a period |
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Term
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Definition
| description of amounts and timing of payments a buyer (debitor) agres to make in future |
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Term
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Definition
abbreviation for END OF MONTH
used to describe credit terms for credit transactions |
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Term
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Definition
| time period that can pass before customers payment is due |
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Term
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Definition
| reduction of price of merchandise by seller to a buyer when payment is made within discount period |
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Term
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Definition
| term used by customer to describe cash discount granted to purchaser for paying within discount period |
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Term
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Definition
| term used by seller to describe cash discount granted to buyers when they pay withing discount period |
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Term
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Definition
| notification that sender has debited recipients' account in senders' recrods |
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Term
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Definition
free on board
point when ownership of goods passes to the buyer |
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Term
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Definition
buyer accepts ownership when good departs seller's place of business
buyer responsible for paying shipping cost and at risk of damage |
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Term
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Definition
seller responsible for damage or loss
ownership of goods transfers from buyer when good arrives at buyer's place of business |
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Term
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Definition
| info outside the usual accounting records |
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Term
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Definition
notification that sender has credited the recipient's account in sender's records
informs buyer of seller's credit to buyer's Account Receivable (on seller's book) |
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Term
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Definition
| inventory losses that occur as result of theft or deterioration |
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Term
| multiple-step income statement |
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Definition
| income statement that shows subtotals between sales and net income, categorizes expenses, and often reports the details of net sales and expenses |
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Term
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Definition
| expenses of promoting sales by displaying and advertising merchandise, making sales and delivering goods to customers |
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Term
| general and administrative expenses |
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Definition
| support a company's overall operations and include expenses relating to accounting, human resource management, and financial management |
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Term
| single step income statement |
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Definition
| income statement that includes cost of goods sold and an expense and shows one subtotal for total total expense |
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Term
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Definition
ratio used to assess a company's ability to settle its current debts with its most liquid assets
defined as quick assets ( cash, short-term investments, and current receivables) divided by current liabilities |
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