Profit & Loss Statements Flashcards
(6 cards)
1
Q
What is gross sales?
A
Total initial dollars received for merchandise sold.
2
Q
What are customer returns and allowances?
A
Customers receive full or partial or partial refunds.
3
Q
What are net sales?
A
Total sales for a given period after deducting customer returns and allowances from gross sales.
4
Q
What are gross margins?
A
The difference between total amount of good sold (net sales) and total cost of goods sold.
5
Q
What are some examples of direct expenses?
A
Salaries, advertising, & buyers traveling expenses.
6
Q
What are examples of indirect expenses?
A
Store maintenance, insurance, security, & depreciation of equipment.
