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100
What is a business that sells merchandise, or goods, to customers?
Merchandiser
100
What is the merchandise that a business sells to customers?
Merchandise inventory
100
What are expenses related to marketing and selling the company's products?
Selling expense
100
What is the amount that a merchandiser earns from selling its inventory called?
Sales Revenue
100
What is a discount that businesses offer to purchasers as an incentive for early payment?
Purchase Discount
200
What is a reduction in the amount of cash received from a customer for an early payment?
Sales discount
200
Sellers allow customers to return merchandise that is defective, damaged, or otherwise unsuitable. What is this called?
Purchase return
200
What are expenses incurred that are NOT related to marketing the company's products?
Administrative expenses
200
What is the transportation cost to ship goods INTO the purchaser's warehouse? the shipping cost on purchased goods
Freight In
200
What is the transportation cost to ship goods OUT of the seller's warehouse? The shipping cost on goods sold to a customer
Freight Out
300
What is the cost of merchandise inventory that the business has sold to customers ?
Cost of goods sold
300
What are expenses that are incurred in the entity's major line of business? (hint: Separated into two categories: selling expenses and administrative expenses)
Operating expenses
300
What is a reduction in price to the purchaser as an incentive to keep goods that are no "as ordered"?
Purchase allowance
300
what is the income statement format that contains subtotals to highlight significant relationships?
Multi-Step Income Statement
300
What does the Multi-Step income statement report besides net income? (hint- two more items that are used to measure the company)
In additions to net income, it reports gross profit and operating income
400
A measure of the result of the entity's major ongoing activities is called what? (Gross profit - operating expenses)
Operating income
400
What is the income statement format that groups all revenues together and then lists and deducts all expenses together without calculating any subtotals?
Single-Step Income Statement
400
What is it called when the risk of loss stays with the seller until the goods arrive at the buyer's designated transfer point, and the seller usually pays for the shipping costs?
Free-on-Board (FOB) Destination
400
What is the amount a company has made on sales of merchandise inventory AFTER returns, allowances, and discounts have been taken out? Sales Revenue- Sales returns and allowances - Sales Discounts =?
Net Sales Revenue
400
What kind of account (A, L, or E) would both the accounts (A) Sales Returns and Allowances and (B) Sales Discounts be? If equity, then say if its a dividend, common stock, revenue or expense account.
Contra Revenue account with a normal debit balance
500
What are decreases in the seller's receivable from a customer's return of merchandise OR from granting the customer a reduction in price (allowance) from the amount owed to the seller?
Sales returns and allowances
500
What is it called when the risk of loss passes to the buyer at the point where the goods leave the seller's place of business and the buyer usually pays the shipping costs?
Free-on-Board (FOB) Shipping Point
500
What are revenues or expenses that are outside the normal day to day operations of a business, such as a gain or loss on the sale of plant assets or interest expense?
Other revenues and expenses
500
What is a measure of the businesses success (profitability) and represents the mark up on the inventory? *Hint* you can also find this by doing: Net Sales- Cost of Goods sold = _________
Gross Profit
500
What is an inventory system that keeps a running computerized record of merchandise inventory?
Perpetual Inventory System
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