Term
|
Definition
| Expenses incurred in the administration or general operations of the business. |
|
|
Term
|
Definition
| The amount of inventory recorded in the accounting records. |
|
|
Term
|
Definition
| The cost that is reported as an expense when merchandise or a manufactured product is sold; also called cost of goods sold. |
|
|
Term
|
Definition
| A form used by a seller to inform the buyer of the amount the seller proposes to decrease the account receivable due from the buyer. |
|
|
Term
|
Definition
| The amount of time the buyer is allowed in which to pay the seller. |
|
|
Term
|
Definition
| Terms for payment on account by the buyer to the seller. |
|
|
Term
|
Definition
| A form used by a buyer to inform the seller of the amount the buyer proposes to decrease the account payable due the seller. |
|
|
Term
| FOB (free on board) destination |
|
Definition
| Freight terms in which the seller pays the transportation costs from the shipping point to the final destination. |
|
|
Term
| FOB (free on board) shipping point |
|
Definition
| Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination. |
|
|
Term
|
Definition
| Sales minus the cost of merchandise sold. |
|
|
Term
| Income from operations (operating income) |
|
Definition
| The excess of gross profit over total operating expenses. |
|
|
Term
|
Definition
| A method of preparing the statement of cash flows that reconciles net income with net cash flows from operating activities. |
|
|
Term
|
Definition
| The amount by which the merchandise for sale, as indicated by the balance of the merchandise inventory account, is larger than the total amount of merchandise counted during the physical inventory. |
|
|
Term
|
Definition
| The bill that the seller sends to the buyer. |
|
|
Term
| Merchandise available for sale |
|
Definition
| The cost of merchandise available for sale to customers. |
|
|
Term
|
Definition
| Merchandise on hand (not sold) at the end of an accounting period. |
|
|
Term
| Multiple-step income statement |
|
Definition
| A form of income statement that contains several sections, subsections, and subtotals. |
|
|
Term
|
Definition
| Gross sales less sales returns and allowances and sales discounts. |
|
|
Term
|
Definition
| Expenses that cannot be traced directly to operations. |
|
|
Term
|
Definition
| Revenue from sources other than the primary operating activity of a business. |
|
|
Term
| Periodic inventory method |
|
Definition
| The inventory method in which the inventory records do not show the amount available for sale or sold during the period. |
|
|
Term
| Perpetual inventory method |
|
Definition
| The inventory system in which each purchase and sale of merchandise is recorded in an inventory account. |
|
|
Term
|
Definition
| A detailed listing of the merchandise for sale at the end of an accounting period. |
|
|
Term
|
Definition
| Discounts taken by the buyer for early payment of an invoice. |
|
|
Term
| Purchase return or allowance |
|
Definition
| From the buyer’s perspective, returned merchandise or an adjustment for defective merchandise. |
|
|
Term
|
Definition
| The form of balance sheet in which assets, liabilities, and stockholders’ equity are reported in a downward sequence. |
|
|
Term
|
Definition
| The total amount charged to customers for merchandise sold, including cash sales and sales on account. |
|
|
Term
|
Definition
| From the seller’s perspective, discounts that a seller can offer the buyer for early payment. |
|
|
Term
| Sales returns and allowances |
|
Definition
| From the seller’s perspective, returned merchandise or an adjustment for damaged or defective merchandise. |
|
|
Term
|
Definition
| Expenses that are incurred directly in the selling of merchandise. |
|
|
Term
| Single-step income statement |
|
Definition
| A form of income statement in which the total of all expenses is deducted from the total of all revenues. |
|
|
