Busy. Please wait.
Log in with Clever

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever

Username is available taken
show password

Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Didn't know it?
click below
Knew it?
click below
Don't Know
Remaining cards (0)
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Accounting IA Ch.6-8

What is a trade discount? Discount for buying in large quantity.
What account is affected for purchase discounts in a perpetual system? How is is affected? Merchandise Inventory is credited.
What is a debit memo (debit memorandum)? Informs the seller of the amount the buyer debited their A/P account to the seller for purchase returns. "Hey, we owe you less money!"
What is a credit memo (credit memorandum)? An authorization for the seller to decrease their A/R account for the buyer. "Hey, Joe Blow owes us less money!"
What does 2/10, n30 mean? How is it read? Credit terms. 2% discount if paid in full in 10 days, must be paid in full in 30 days. Read as "Two ten net thirty".
What is a report form? A balance sheet in a three part downward form.
What is an account form? A balance sheet with assets on the left and liabilities and owner's equity on the right.
What are administrative expenses (general expenses)? Give a few examples. Expenses incurred in management of the business. EG office salaries, office supplies, depreciation of office equipment
What are selling expenses? Give a few examples. Expenses incurred in the direct selling of merchandise. EG advertising expenses, store salaries, delivery fees, depreciation of store equipment and buildings, rent expenses.
How is operating income (income from operations) calculated? Operating income=Net Income Therefore, gross profit minus operating expenses equals operating income or net income/loss.
Why are perpetual systems so widely used? Many businesses use computerized systems.
How are the cost of merchandise sold and inventory determined in a periodic system? By physically counting the inventory at the end of the period.
How are the cost of merchandise sold and inventory determined in a perpetual system? Each purchase and sale is recorded in the Merchandise Inventory and Cost of Merchandise Sold accounts.
How do you calculate Net Sales? Sales-Sales Returns and Allowances-Sales Discounts = Net Sales
What kind of accounts are Sales R&A and Sales Discounts? How are the accounted for on the income statement? They are contra asset accounts. They are subtracted from sales to get net sales.
How do you calculate net income? Sales-Cost of Merchandise Sold = Gross Profit - Operating Expenses = Net Income/Loss
How is gross profit calculated? Sales-Cost of Merchandise Sold = Gross Profit
Created by: jilly15
Popular Accounting sets




Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
restart all cards