Purchases less purchase discounts and purchase returns and allowances.

Sale revenue less sales discounts and sales returns and allowances.

Expenses other than cost of goods sold, that are incurred in the entity's major line of business. Examples include rent, depreciation, salaries, wages, utilities, and supplies expense.

Gross profit minus operating expenses plus any other operating revenues.

Expense that is outside the main operations of a business, such as a loss on the sale of plant assets.

Revenue that is outside the main operations of a business, such as a gain on the sale of plant assets.

periodic inventory system

A system in which the business does not keep a comtinuous record of inventory on hand. At the end of hte period, it makes a physical count of on-hand inventory and uses this information to prepare the financial statements.

perpetual inventory system

The accounting inventorysystem in which the business keeps a running record of inventory and cost of goods sold.

The amount that a memory chandiser earns from selling its inventory. Also called Sales Revenue.

Reduction in the amount receivable from a customer, offered by the seller as an incentive for the customer to pay promptly. A contra account to Sales Revenue

sales returns and allowances

Decreases in the seller's receivable from a customer's return of merchandise or from granting the customer an allowance from the amount owed to the seller. A contra account to Sales Revenue

The amount that a memory chandiser earns from selling its inventory.

single-step income statement

Format that groups all revenues together and then lists and deducts all expenses together without drawing any subtotals.

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Question	Answer
net purchases	Purchases less purchase discounts and purchase returns and allowances.
net sales revenue	Sale revenue less sales discounts and sales returns and allowances.
operating expenses	Expenses other than cost of goods sold, that are incurred in the entity's major line of business. Examples include rent, depreciation, salaries, wages, utilities, and supplies expense.
operating income	Gross profit minus operating expenses plus any other operating revenues.
other expense	Expense that is outside the main operations of a business, such as a loss on the sale of plant assets.
other revenue	Revenue that is outside the main operations of a business, such as a gain on the sale of plant assets.
periodic inventory system	A system in which the business does not keep a comtinuous record of inventory on hand. At the end of hte period, it makes a physical count of on-hand inventory and uses this information to prepare the financial statements.
perpetual inventory system	The accounting inventorysystem in which the business keeps a running record of inventory and cost of goods sold.
sales	The amount that a memory chandiser earns from selling its inventory. Also called Sales Revenue.
sales discount	Reduction in the amount receivable from a customer, offered by the seller as an incentive for the customer to pay promptly. A contra account to Sales Revenue
sales returns and allowances	Decreases in the seller's receivable from a customer's return of merchandise or from granting the customer an allowance from the amount owed to the seller. A contra account to Sales Revenue
sales revenue	The amount that a memory chandiser earns from selling its inventory.
single-step income statement	Format that groups all revenues together and then lists and deducts all expenses together without drawing any subtotals.

Created by: mattschultice

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