Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
32 Cards in this Set
- Front
- Back
Merchandiser |
A business that sells merchandise, or Goods, to customers. |
|
Merchandise inventory |
The merchandise that the business sales to customers. |
|
Wholesaler |
A type of merchandiser that buys goods from the manufacturers and then sells them to retailers. |
|
Retailer |
A type of merchandiser that buys merchandise either from a manufacturer or wholesaler and then sells those goods to Consumers. |
|
Vendor |
The individual or business from whom a company purchases goods. |
|
Cost of goods sold |
The cost of the merchandise inventory that the business has sold to customers. |
|
Operating Expenses |
Expenses, other than cost of goods sold, that are incurred in the entities major ongoing operations. |
|
Periodic inventory system |
An inventory system that requires businesses to obtain a physical count of inventory to determine quantities on hand. |
|
Perpetual inventory system |
An inventory system that keeps a running computerized record of merchandise inventory. |
|
Invoice |
A seller's request for payment from the purchaser. |
|
Purchase discount |
A discount that businesses offer to purchasers as an incentive for early payment. |
|
Credit terms |
The payment terms of purchase or sale as stated on the invoice. |
|
Purchase return |
A situation in which sellers allow purchasers to return merchandise that is defective, damage, or otherwise unsuitable. |
|
Purchase allowance |
An amount granted to the purchaser as an incentive to keep Goods that are not "as ordered" |
|
Free on board shipping point |
Situation in which the buyer takes ownership to the goods after the goods leave the sellers place of business and the buyer typically pays the freight. The title passes to the buyer at the shipping point. The buyer pays the freight. |
|
Free on board destination |
Situation in which the buyer takes ownership to the goods at the delivery destination point and the seller typically pays the freight. |
|
Freight in |
The transportation cost to ship goods into the purchaser's warehouse; therefore, it is Freight on purchased goods. |
|
Freight out |
The transportation cost to ship goods out of the sellers Warehouse, therefore, it is Freight on good sold to a customer. |
|
Sales discount |
Reduction in the amount of cash received from a customer for early payment. |
|
Sales returns and allowances |
Decreases in a seller's receivable from a customer's return of merchandise or from granting the customer an allowance from the amount owed to the seller. |
|
Net sales revenue |
The amount a company has earned on sales of merchandise inventory after returns, allowances, and discounts have been taken out. Sales revenue Less sales returns and allowances and sales discounts. |
|
Inventory shrinkage |
The loss of inventory that occurs because of theft, damage, and errors. |
|
Single-step income statement |
Income statement format that groups all revenues together and then lists and deduct all expenses together without calculating any subtotals |
|
Multi-step income statement |
Income statement format that contain subtotals to highlight significant relationships. In addition to net income, it reports gross profit and operating income. Some of the subtotals include selling expenses, administrative expenses, other revenues and expenses comma and income tax expense. |
|
Selling expenses |
Expenses related to marketing and selling the company's goods and services. |
|
Administrative expenses |
Expenses incurred that are not related to marketing the company's goods and services. |
|
Operating income |
Measures the results of the entities major ongoing activities. Gross profit - operating expenses. |
|
Other revenues and expenses |
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. |
|
Income tax expense |
Expense incurred by a corporation related to federal and state income taxes. |
|
Gross profit percentage |
Measures the profitability of each sales dollar above the cost of goods sold. Gross profit / net sales revenue. |
|
Net purchases |
Purchases less purchase returns and allowances less purchase discounts. |
|
Gross profit |
Excess of net sales revenue over cost of goods sold. |