Chapter 4
What does the Following Mean?
2/10,n/30
You get a 2% Discount if paid in full in 10 days, or you have to pay it all in full in 30 days.
What does FOB Shipping point Mean?
The Freight on Board is owned by the Buying whenever those items are shipped from the warehouse.
What does FOB Destination mean?
The Freight on board is owned by the Buyer once it arrives at the final destination.
Sales - Cost of Goods Sold = ?
Gross Profit
Sales - Sales Discount - Sales Returns and Allowances = ?
Net Sales
What is Reported on a balance Sheet as a current Asset, and is intended to be sold by a company?
Merchandise Inventory
What Method of inventory System continuously disclose the amount of Inventory?
Hint: You always know what you have on hand.
Perpetual Method
What Method of inventory System determines the inventory on hand at the end of an accounting period?
Periodic Method
What shows Both Gross profit and Income from Operations?
Multiple-step Income statements
Customer returns merchandise for a refund is considered?
Sales Returns
Companies that would normally offer trade discounts to their customers?
Wholesalers
What are Expenses that support a company's overall operations?
General and administrative expenses
expenses that incur when directly selling merchandise?
Selling Expense
what is recorded when there is a difference between physical count and the inventory record?
Inventory Shrinkage
The arrangements between buyer and seller as to when payments for merchandise are to made is?
credit terms