tr ch5-2 Word Scramble
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Question | Answer |
net purchases | purchases less purchase discounts and purchase returns and allowances |
net sales revenue | sales revenue less sales discounts and sales returns and allowances |
operating expenses | expense that is outside the main operations of a business, such as a loss on the sale of plant assets |
operating income | gross profit minus operating expenses plus any other operating revenues. also called income from operations |
other 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 |
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 | system in which the business does not keep a continuous record of inventory on hand. at the end of the period, it makes a physical count of on-hand inventory and uses this information to prepare the financial statements |
perpetual inventory system | the accounting inventory system in which the business keeps a running record of inventory and cost of goods sold |
sales | the amount that a merchandiser 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 asset 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 merchandiser earns from selling its inventory. also called sales |
single-step income statement | format that groups all revenues together and then lists and deducts all expenses together without drawing any subtotals |
Created by:
tomrobbins
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