Chapter 10 Flashcards
(15 cards)
The term merchandise inventory means
Merchandise on hand
Beginning inventory plus purchases mine is ending inventory equals
Cost of goods sold
A credit invoice issued by a business will decrease what
Decrease assets
Up-to-the-minute information about a company stock is best provided by
Perpetual inventory systems
The merchandise inventory on hand at the end of the fiscal. Decreases what
Decreases the cost of good sold
You can’t use to accumulate transportation charges on incoming merchandise using the periodic inventory system is
Freight in
The final inventory figure must be included on the balance sheet as
Current asset
Cost of goods sold definition
Account debited when the sale is made under the perpetual inventory system
Taking inventory definition
Process of counting itemizing and recording the value of goods on hand
Cost of goods available for sale definition
Beginning inventory plus purchases
Net sale definition
Sales minus sales returns and allowances and sales discounts
Credit invoice definition
Negative sales invoice
Wholesaler definition
A business that buys goods from manufactures and sells other businesses that sell to the public
Sales return definition
Defective merchandise return by customer
Gross profit
Excess of net sales over cost of goods sold
