Term
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Definition
| record sales when goods are shipped, buyer pays for shipping |
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Term
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Definition
| record sales when goods are received by customer, seller pays for shipping |
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Term
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Definition
| sales - sales discounts - sales returns and allowances - credit card discounts |
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Term
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Definition
| account receivable - allowance for doubtful accounts |
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Term
| receivables turnover ratio |
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Definition
| net sales/average accounts receivable |
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Term
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Definition
| bad debt expense/net sales |
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Term
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Definition
| assets held for resale or for use in the production of goods for sale |
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Term
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Definition
| include all costs incurred to get inventory in usable or salable condition |
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Term
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Definition
| purchases + transportation in - purchase returns and allowances - purchase discounts |
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Term
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Definition
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Term
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Definition
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Term
| periodic inventory system |
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Definition
| small business use this, count inventory every week |
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Term
| perpetual inventory system |
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Definition
| track inventory every day |
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Term
| lower of cost or market on balance sheet |
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Definition
| loss due to decline in inventory |
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Term
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Definition
| cost to replace like items |
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Term
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Definition
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Term
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Definition
| a company must generally choose the same method for GAAP as is used for tax purposes when LIFO is used |
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Term
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Definition
| type of inventory counting method which results in smaller tax payments due to higher COGS |
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Term
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Definition
| property, plant, and equipment. subject to depreciation |
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Term
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Definition
net purchase/cost
legal fees
survey fees
broker's commission |
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Term
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Definition
purchase/construction cost
legal fees
appraisal fees
architect fees |
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Term
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Definition
purchase/ construction cost
sales taxes
transportation costs
setup and installation |
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Term
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Definition
| ordinary repairs and maintenance. does not increase productivity and does not extend life beyond original estimate |
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Term
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Definition
| extraordinary repairs and additions. partial replacements or extends life beyond original estimate or increases productivity |
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Term
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Definition
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Term
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Definition
| cost - accumulate depreciation |
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Term
| fixed asset turnover ratio |
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Definition
| net sales or (operation revenues)/ average net fixed assets |
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Term
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Definition
| accumulated depreciation/ depreciation expense |
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Term
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Definition
| estimated future cash flows of asset is less than the book value of the asset |
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Term
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Definition
| rights, privileges, and competitive advantages that result from ownership of long lived assets that do not possess physical form |
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Term
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Definition
| cost allocation of intangible assets |
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Term
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Definition
| excess of purchase price over identifiable net assets of the firm acquired |
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