Inventory Systems
This system determines cost of goods sold at the end of the accounting period
What is a Periodic Inventory System
Because ownership of goods isn't transferred until they are delivered to the buyer, this freight type means the seller pays the cost of shipping.
What is FOB Destination
This financial statement lists all the accounts but separates them depending on if they are long term or short term.
What is The Classified Balance Sheet
This credit term will provide a discount of 10% if paid within the next 15 days, otherwise a full payment will be due in 30 days.
What is 10/15, net 30.
By updating records whenever a transaction occurs, this type of system always shows the inventory that should be on hand.
What is a Perpetual Inventory System
This freight term indicates the buyer pays shipping costs from the shipping point to the destination along with damages.
What is FOB Shipping Point
This statement shows profit or loss based on the revenues earned and expenses incurred.
What is the Single Step Income Statement
This discount provides the buyer a price reduction for early payment of a credit purchase.
What is Purchase Discount
By separating operating and non operating activities, this statement highlights different components of the net income.
What is the Multi-Step Income Statement
Given to buyers for purchasing large volumes of goods.
A discount given by the seller for early payment of a credit sale.
What is Sales Discount