click below
click below
Normal Size Small Size show me how
accounting 2nd stack
vocabulary
Question | Answer |
---|---|
cost of goods sold | The cost of the inventory that the business has sold to customers. |
cost of sales | The cost of the inventory that the business that the business has sold to customers. |
gross margin | Excess of net sales revenue over cost of goods sold. |
gross margin percentage | Gross profit divided by net sales revenue. A measure of profitability. |
gross profit | Excess of net sales revenue over cost of goods sold. |
gross profit percentage | Gross profit divided by net sales revenue. A measure of profitability. |
income from operations | Gross profit minus operating expenses plus any other operating revenues. |
inventory | All the goods that the company owns and expects to sell in the normal course of operations. |
inventory turnover | Ratio of cost of goods sold to average inventory. Measures the number of times a company sells its average level of inventory during a year. |
invoice | A seller's request for cash from the purchaser. |
multi-step income statement | Format that contains subtotals to highlight significant relationships. In addition to net income, it reports gross profit and operating income. |