Busy. Please wait.
or

show password
Forgot Password?

Don't have an account?  Sign up 
or

Username is available taken
show password

why


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.
We do not share your email address with others. It is only used to allow you to reset your password. For details read 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.
Don't know
Know
remaining cards
Save
0:01
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the "Know" box, the DOWN ARROW key to move the card to the "Don't know" box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

"Know" box contains:
Time elapsed:
Retries:
restart all cards
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

Prin. Acct. Ch. 5

Terms and Definitions

QuestionAnswer
Administrative Expenses Expenses relating to general operating activities such as personnel management, accounting, and store security.
Contra-Revenue Account An account that is offset against a revenue account on the income statement.
Cost of Goods Sold The total cost of merchandise sold during the period.
FOB Destination Freight terms indicating that the seller places the goods free on board to the buyer's place of business, and the seller pays the frieght.
FOB Shipping Point Freight terms indicating that the seller places goods free on board the carrier, and the buyer pays the freight costs.
Gross Pofit The excess of net sales over the cost of goods sold.
Gross Profit Rate Gross profit expressed as a percentage, by dividing the amount of gross profit by net sales.
Income from Operations Income from a company's principal operating activity; determined by subtracting cost of goods sold and operating expenses from net sales.
Multiple-Step Income Statment An income statement that shows several steps in determining net income.
Net Sales Sales less sales returns and allowances and less sales discounts.
Non-Operating Activities Various revenues, expenses, gains, and losses that are unrelated to a company's main line of operations.
Operating Expenses Expense incurred in the process of earning sales revenues.
Other Expenses and Losses A non-operating activities section of the income statement that shows expenses from auxiliary operations and losses unrelated to the company's operations.
Other Revenues and Gains A non-operating activities section of the income statement that shows revenues from auxiliary operations and gains unrelated to the company's operations.
Periodic Inventory System An inventory system under which the company does not keep detailed inventory records throughout the accounting period but determines the cost of goods sold only at the end of an accounting period.
Perpetual Inventory System An inventory system under which the company keeps detailed records of the cost of each inventory purchase and sale and the records continuously show the inventory that should be on hand.
Purchase Allowance A deduction made to the selling price of merchandise, granted by the seller so that the buyer will keep the merchandise.
Purchase Discount A cash discount claimed by a buyer for prompt payment of a balance due.
Purchase Invoice A document that supports each credit purchase.
Purchase Return A return of goods from the buyer to the seller for a cash or credit refund.
Sales Discount A reduction given by a seller for prompt payment of credit sale.
Sales Invoice A document that supports each credit sale.
Sales Returns and Allowances Purchase returns and allowances from the seller's perspective.
Sales Revenue (Sales) The primary source of revenue in a merchandising company.
Selling Expenses Expenses associated with making sales.
Single-Step Income Statement An income statement that shows only one step in determining net income.