Term
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Definition
| the form of balance sheet presented with assests on the left-hand side and the liabilities and stockholder's equity on the right-hand side |
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Term
| cost of merchandise purchased |
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Definition
| the cost of merchandise purchased during a period, computed as purchases less purchases returns and allowances, less purchase discounts, plus freight in. |
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Term
| cost of merchandise sold / cost of goods sold |
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Definition
| the cost that is reported as an expense when merchandise or a manufactured product is sold |
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Term
| FOB (free on board) destination |
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Definition
| freight terms in which the SELLER pays the transportation costs from the shipping point to the final destination |
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Term
| FOB (free on board) shipping point |
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Definition
| freight terms in which the BUYER pays the transportation costs from the shipping point to the final destination |
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Term
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Definition
| sales minus the cost of merchandise sold |
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Term
| income from operations / operating income |
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Definition
| the excess of gross profit over total operating expenses. |
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Term
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Definition
| the bill that the seller sends to the buyer |
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Term
| merchandise available for sale |
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Definition
| the cost of merchandise available for sale to customers |
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Term
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Definition
| merchandise on hand (not sold) at the end of an accounting period |
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Term
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Definition
| gross sales less sales returns and allowances and sales discounts |
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Term
| periodic inventory system |
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Definition
| the inventory method in which the inventory records do not show the amount available for sale or sold during the period |
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Term
| perpetual inventory system |
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Definition
| the inventory system in which each purchase and sale of merchandise is recorded in an inventory account |
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Term
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Definition
| discounts taken by the buyer for early payment of an invoice |
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Term
| purchases returns and allowances |
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Definition
| from the buyer's perspective, returned merchandise or an adjustment for defective merchandise |
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Term
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Definition
| the total amount charged to customers for merchandise sold, including cash sales and sales on account |
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Term
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Definition
| from the seller's perspective, discounts that a seller can offer the buyer for early payment |
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Term
| sales returns and allowances |
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Definition
| from the seller's perspective, returned merchandise or an adjustment for damaged or defective merchandise |
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Term
| single-step income statement |
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Definition
| a form of income statement in which the total of all expenses is deducted from the total of all revenues. |
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