Term
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Definition
| An account that is offset against a revenue account on the income statement. |
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Term
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Definition
| The total cost of merchandise sold during the period. |
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Term
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Definition
| The excess of net sales over the cost of goods sold. |
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Term
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Definition
| Gross Profit expressed as a percentage by dividing the amount of gross profit by net sales. |
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Term
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Definition
| Sales less sales returns and allowances and sales discounts |
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Term
| Periodic Inventory System |
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Definition
| An inventory system in which a company does not maintain detailed records of goods on hand and determines the cost of goods sold only at the end of an accounting period. |
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Term
| Perpetual Inventory System |
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Definition
| A detailed inventory system in which a company maintains the cost of each inventory item and the records continuously show the inventory that should be on hand. |
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Term
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Definition
| Measures the percentage of each dollar of sales that results in net income, computed by dividing net income by net sales. |
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Term
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Definition
| A deduction made to the selling price of merchandise, granted by the seller so that the buyer will keep the merchandise. |
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Term
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Definition
| A cash discount claimed by a buyer for prompt payment of a balance due. |
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Term
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Definition
| A document that supports each purchase. |
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Term
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Definition
| A return of goods from the buyer to the seller for cash or credit. |
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Term
| Quality of earnings Ratio |
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Definition
| A measure used to indicate the extent to which a company's earnings provide a full and transparent depiction of its performance; computed as net cash provided by operating activities divided by net income. |
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Term
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Definition
| A reduction given by a seller for prompt payment of a credit sale. |
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Term
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Definition
| A document that provides support for each sale. |
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Term
| Sales returns and allowances |
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Definition
| Transactions in which the seller either accepts the goods back from the purchaser (a return) or grants a reduction in the purchase price (an allowance) so that the buyer will keep the goods. |
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Term
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Definition
| Primary source of revenue in a merchandising company. |
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Term
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Definition
| A company determines the cost of goods sold EACH TIME A SALE OCCURS |
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