A BALANCE SHEET THAT CONTAINS STANDARD CLASSIFICATIONS OR SECTIONS
What is CLASSIFIED BALANCE SHEET
100
EXPENSES INCURRED IN THE PROCESS OF EARNING SALES REVENUE
What is OPERATING EXPENSES
100
ENTRIES MADE AT THE END OF AN ACCOUNTING PERIOD TO TRANSFER THE BALANCES OF TEMPORARY ACCOUNTS TO A PERMANENT OWNER’S EQUITY ACCOUNT, OWNER’S CAPITAL
What is CLOSING ENTRIES
100
A TEMPORARY ACCOUNT USED IN CLOSING REVENUE AND EXPENSE ACCOUNTS
What is INCOME SUMMARY
100
ENTRIES TO CORRECT ERRORS MADE IN RECORDING
What is CORRECTING ENTRIES
200
THE ABILITY OF A COMPANY TO PAY OBLIGATIONS EXPECTED TO BE DUE WITHIN THE NEXT YEAR
What is LIQUIDITY
200
INVENTORY COSTING METHOD THAT USES THE WEIGHTED-AVERAGE UNIT COST TO ALLOCATE TO ENDING INVENTORY AND COST OF GOODS SOLD THE COST OF GOODS AVAILABLE FOR SALE.
What is AVERAGE-COST METHOD
200
INVENTORY COSTING METHOD THAT ASSUMES THAT THE COSTS OF THE EARLIEST GOODS PURCHASED ARE THE FIRST TO BE RECOGNIZED AS COST OF GOODS SOLD.
What is FIFO
200
OBLIGATIONS THAT A COMPANY EXPECTS TO PAY WITHIN THE COMING YEAR OR ITS OPERATING CYCLE, WHICHEVER IS LONGER
What is CURRENT LIABILITIES
200
INVENTORY COSTING METHOD THAT ASSUMES THE COSTS OF THE LATEST UNITS PURCHASED ARE THE FIRST TO BE ALLOCATED TO COST OF GOODS SOLD.
What is LIFO
300
AN ACCOUNT THAT IS OFFSET AGAINST A REVENUE ACCOUNT ON THE INCOME STATEMENT
What is CONTRA REVENUE ACCOUNT
300
DICTATES THAT A COMPANY USE THE SAME ACCOUNTING PRINCIPLES AND METHODS FROM YEAR TO YEAR
What is CONSISTENCY CONCEPT
300
MEASURE OF THE AVERAGE NUMBER OF DAYS INVENTORY IS HELD; CALCULATED AS 365 DIVIDED BY INVENTORY TURNOVER.
What is DAYS IN INVENTORY
300
ASSETS THAT A COMPANY EXPECTS TO CONVERT TO CASH OR USE UP WITHIN ONE YEAR
What is CURRENT ASSETS
300
SALES REVENUE LESS SALES RETURNS AND ALLOWANCES AND LESS SALES DISCOUNTS
What is NET SALES
400
THE TOTAL COST OF MERCHANDISE SOLD DURING THE PERIOD
What is COST OF GOODS SOLD
400
FREIGHT TERMS INDICATING THAT THE SELLER PLACES GOODS FREE ON BOARD THE CARRIER, AND THE BUYER PAYS THE FREIGHT COSTS.
What is FOB SHIPPING POINT
400
GOODS HELD FOR SALE BY ONE PARTY ALTHOUGH OWNERSHIP OF THE GOODS IS RETAINED BY ANOTHER PARTY
What is CONSIGNED GOODS
400
THE CURRENT COST TO REPLACE AN INVENTORY ITEM
What is CURRENT REPLACEMENT COST
400
INCOME FROM A COMPANY’S PRINCIPAL OPERATING ACTIVITY; DETERMINED BY SUBTRACTING COST OF GOODS SOLD AND OPERATING EXPENSES FROM NET SALES.
What is INCOME FROM OPERATIONS
500
AN INVENTORY SYSTEM UNDER WHICH THE COMPANY KEEPS DETAILED RECORDS OF THE COST OF EACH INVENTORY PURCHASE AND SALE, AND THE RECORDS CONTINUOUSLY SHOW THE INVENTORY THAT SHOULD BE ON HAND.
What is PERPETUAL INVENTORY SYSTEM
500
NON-CURRENT ASSETS THAT DO NOT HAVE PHYSICAL SUBSTANCE.
What is INTANGIBLE ASSETS
500
THE EXCESS OF NET SALES OVER THE COST OF GOODS SOLD
What is GROSS PROFIT
500
A BASIS WHEREBY INVENTORY IS STATED AT THE LOWER OF EITHER ITS COST OR ITS MARKET VALUE AS DETERMINED BY CURRENT REPLACEMENT COST.
What is (LCM) LOWER OF COST OR MARKET
500
FREIGHT TERMS INDICATING THAT THE SELLER PLACES THE GOODS FREE ON BOARD TO THE BUYER’S PLACE OF BUSINESS, AND THE SELLER PAYS THE FREIGHT.