Are friend looking for accountancy terms and definitions roughly sales, inventory and also cost of items sold? right here they are:Sales discount – A reduction given by a seller for prompt payment of a credit sale.
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Sales invoice – A file that support each credit sale.Sales returns and also allowances – purchase returns and allowances indigenous the seller’s perspective. See acquisition return and also Purchase allowance, above.Net sales – Sales much less sales returns and also allowances and less sales discounts.Sales revenue (Sales) – The primary resource of revenue in a merchandising company.Contra-revenue account – one account the is offset against a revenue account ~ above the earnings statement.Cost of products sold – The complete cost of goods sold during the period.Periodic perform system – one inventory device under i m sorry the firm does no keep in-depth inventory documents throughout the accounting period but determines the price of products sold just at the end of an accountancy period.Perpetual list system – one inventory device under i m sorry the company keeps comprehensive records that the price of each inventory purchase and sale and the documents continuously show the inventory that need to be top top hand.Raw materials – straightforward goods that will be used in production however have not yet been placed into production.Work in process – That section of made inventory that has been placed into the production process but is not yet complete.Finished items inventory – manufactured items that are completed and also ready because that sale.Purchase allowance – A deduction made to the selling price of merchandise, granted through the seller so that the buyer will keep the merchandise.Purchase discount – A cash discount asserted by a buyer for prompt payment the a balance due.Purchase invoice – A record that supports each credit transaction purchase.Purchase return – A return of products from the buyer to the seller because that a cash or credit refund.Gross profit – The overabundance of network sales over the expense of products sold.Gross benefit rate – Gross benefit expressed together a percentage, by dividing the lot of gross benefit by network sales.Income from operations – earnings from a company’s principal operating activity; figured out by subtracting cost of goods sold and also operating costs from net sales.Multiple-step revenue statement – An earnings statement that mirrors several steps in determining net income.Nonoperating activities -Various revenues, expenses, gains, and losses that are unrelated to a company’s key line of operations.Operating expenses – expenses incurred in the procedure of earning sales revenues.Other expenses and losses – A nonoperating-activities ar of the revenue statement that shows expenses and also losses unrelated come the company’s main line the operations.Other revenues and also gains – A nonoperating-activities section of the revenue statement that mirrors revenues and also gains unrelated come the company’s key line that operations.Single-step revenue statement – An earnings statement the shows only one action in determining net income.FOB destination – Freight state indicating that the seller places the goods free on board to the buyer’s ar of business, and also the seller payment the freight.FOB shipping point – Freight state indicating that the seller locations goods free on plank the carrier, and the buyer pays the freight costs.
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