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Acct Test #2 CH 5
Fichas del conjunto (31)
- 1Merchandise InventoryThe account wholesalers and retailers use to report inventory and held for resale
- 2Raw materialsThe inventory of a manufacturer before the addition of any direct labor or manufacturing overhead
- 3Work in progressThe cost of unfinished products in a manufacturing company
- 4Finished goodsA manufacturer's inventory that is complete and ready for sale
- 5Gross profitNet sales less cost of goods sold
- 6Net salesSales revenue less sales returns or allowances and sales and sales discounts
- 7Sales revenueA representation of the inflow of assets
- 8Sales Returns and AllowancesContra-revenue account used to record refunds to customers and reductions of their accounts
- 9Sales DiscountsA contra-revenue account used to record discounts given to customers for early payments of their accounts
- 10Cost of goods available for saleBeginning inventory plus cost of goods purchased
- 11Cost of goods soldCost of goods available for sale minus ending inventory
- 12Perpetual systemA system in which the inventory account is increased at the time of each purchase and decreased at the time of each sale
- 13Periodic systemA system in which the inventory account is updated only at the end of the period
- 14Transportation-inAn adjunct account used to record freight costs paid by the buyer
- 15PurchasesAn account used in a periodic inventory system to record acquisitions of merchandise
- 16Purchase Returns and AllowancesA contra-purchases account used in a periodic inventory system when a refund is received from a supplier or a reduction is given in the balance owed to a supplier
- 17Purchase discountsA contra-purchases account used to record reductions in purchase price for early payment to a supplier
- 18FOB destination pointTerms that require the seller to pay for the cost of shipping the merchandise to the buyer
- 19FOB shipping pointTherms that require the buyer to pay for the shipping cost
- 20Gross profit ratioGross profit divided by net sales
- 21Weighted average cost methodAn inventory costing method that assigns the same unit cost to all units available for sale during the period
- 22FIFO methodAn inventory costing method that assigns the most recent costs to ending inventory
- 23LIFO methodAn inventory method that assigns the most recent costs to cost of goods sold
- 24LIFO LiquidationThe result of selling more units than are purchased during the period which can have negative tax consequences if a company is LIFO
- 25LIFO conformity ruleThe IRS requirement that when LIFO is used on a tax return, it must also be used in reporting income to stockholders
- 26LIFO reserveThe excess of the value of a company's inventory stated at FIFO over the value stated in LIFO
- 27Replacement costThe current cost of a unit of inventory
- 28Inventory profitThe portion of the gross profit that results from holding inventory during a period of rising prices
- 29Lower-of-cost-or-market (LCM) ruleA conservative inventory valuation approach that in an attempt to anticipate declines in the value of inventory before its actual sale
- 30Inventory turnover ratioA measure of the number of times inventory is sold during the period
- 31Number of days' sales in inventoryA measure of how long it takes to sell inventory
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- Fichas sobre Acct Test #2 CH 5, creado por lossingraham el 09/03/2015.
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