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Flashcards in Chapter 5 Vocabulary Deck (41)
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31

ratio of sales to assets

Ratio that measures how effectively a company uses its assets; computed as net sales divided by average total assets.

32

report form

The form of balance sheet with the Liabilities and Owner’s Equity sections presented below the Assets section.

33

sales

The total amount charged customers for merchandise sold; including cash sales and sales on account.

34

sales discounts

From the seller’s perspective; discounts that a seller may offer the buyer for early payment.

35

selling expenses

Expenses that are incurred directly in the selling of merchandise.

36

shortage

An overhead activity that consists of changing tooling in machines in preparation for making a new product.

37

single-step income statement

A form of income statement in which the total of all expenses is deducted from the total of all revenues.

38

special journals

Journals designed to be used for recording a single type of transaction.

39

statement

Performance goals; often relating to how much a product should cost.

40

subsidiary ledger

A ledger containing individual accounts with a common characteristic.

41

trade discounts

Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers.