Term
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Definition
| A company uses these revenue and expense accounts for only one accounting period to record the effects of its transactions on its net income. |
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Term
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Definition
| Asset,liability, and the owner's capital accounts are called this because they are used for the life of the compnay to record the effects of its transactions on its balance sheet. |
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Term
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Definition
| Includes all the revenues and expenses incurred in the primary operation activities of the company. (three subsections = revenues, costs of goods sold, and operating expenses) |
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Term
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Definition
| Include any revenue and expenses that are not directly related to the primary operations of the company, items such as interest revenue and interest expense. |
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Definition
| A reduction in the sales price of a good or service because of the number of items purchased or because of a sales promotion. |
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Definition
| A percentage reduction of the invoice price if the customer pays the invoice within a specified period. |
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Definition
| A sales discount is frequently called this because when taken by a customer the discount reduces the cash received. |
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Term
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Definition
| Occurs when a customer returns previously purchased merchandise. |
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Term
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Definition
| Occurs when a customer agrees to keep the merchandise, and the company refunds a portion of the original sales price. |
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Definition
| Is a business document that lists the information for a sales return or allowance. |
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Term
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Definition
| A classifed income statement shows the expense of cost of the goods that it sells during the accounting period. |
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Term
| Perpetual Inventory System |
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Definition
| Keeps a continuous record of the cost of inventory on hand and the cost of inventory sold. |
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Term
| Periodic Inventory System |
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Definition
| Does not keep a continuous record of the inventory on hand and sold, but determines the inventory at the end of each accounting periody by physically counting it. |
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Term
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Definition
| Term used because the amount of merchandise purchases (invoice cost and transportation-in) is adjusted (reduced) for purchases returns, allownaces , and discounts. |
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Term
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Definition
| The dollar amount of merchandise on hand, based on teh physical count, at the end of the accounting period. |
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Term
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Definition
| The amount of revenue that a company has "left over" (after recovering the cost of the products it sold) to cover its operating expenses. |
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Term
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Definition
| The expenses (other than cost of good sold that a company incurs in its day-to-day operations. |
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Term
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Definition
| The operating expenses related to the sales activities of a company. |
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Term
| General and Administrative Expenses |
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Definition
| The operating expenses related to the general management of a company. |
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Term
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Definition
| On a company's income statement, the total operating expenses are deducted from gross profit to determine this...? |
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Term
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Definition
| (Sometimes called the nonoperating income) section of a company's income statement includes items that are not related to the primary operations of the company. |
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Term
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Definition
| Is the uncertainty about the future earnings potential of a company. |
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Term
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Definition
| Refers to a company's ability to continue a given level of operations in the future. |
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Term
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Definition
| Refers to a company's ability to adapt to change in the future. |
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Term
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Definition
| Consists of computations in which an item on the company's financial statements is divided by another, related item. |
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Term
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Definition
| Are entries made by a company to transfer the ending balances from its temporary revenue and expense accounts into its permanent account for owner's capital. |
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