Flashcards in Chapter 5 Vocabulary Deck (41)
ratio of sales to assets
Ratio that measures how effectively a company uses its assets; computed as net sales divided by average total assets.
The form of balance sheet with the Liabilities and Owner’s Equity sections presented below the Assets section.
The total amount charged customers for merchandise sold; including cash sales and sales on account.
From the seller’s perspective; discounts that a seller may offer the buyer for early payment.
Expenses that are incurred directly in the selling of merchandise.
An overhead activity that consists of changing tooling in machines in preparation for making a new product.
single-step income statement
A form of income statement in which the total of all expenses is deducted from the total of all revenues.
Journals designed to be used for recording a single type of transaction.
Performance goals; often relating to how much a product should cost.
A ledger containing individual accounts with a common characteristic.