Fabm 2

Subdecks (1)

Cards (44)

  • Sales
    The total amount of revenue that the company was able to generate from selling products
  • Contra revenue
    Reductions to sales accounts that are on the debit side, contrary to the normal balance of the sales or revenue accounts
  • Sales returns
    Account debited to record returns of customers or allowances for such returns
  • Sales discount
    Discounts given to customers who pay early, also known as cash discount
  • Net sales
    Sales less Sales returns and Sales discount
  • Cost of goods sold
    The actual cost of merchandise that the company was able to sell during the year
  • Beginning inventory
    The amount of inventory at the beginning of the accounting period, also the ending inventory from the previous period
  • Net cost of purchases
    Net Purchases + Freight In
  • Net purchases
    Purchases - (Purchase discount and purchase returns)
  • Purchases
    Amount of goods bought during the current accounting period
  • Purchase discount
    Account used to record early payments by the company to the suppliers of merchandise
  • Purchase returns

    Account used to record merchandise returned by the company to their suppliers
  • Freight in
    Transportation costs of merchandise purchased by the company
  • Cost of goods available for sale
    Beginning inventory + Net cost of purchases
  • Ending inventory
    Amount of inventory presented in the Statement of Financial Position, the total cost of inventory unsold at the end of the accounting cycle
  • Gross profit
    Sales - Cost of goods sold
  • General and administrative expenses
    Expenses not directly related to the merchandising function of the company but necessary for the business to operate effectively
  • Selling expenses
    Expenses directly related to the sale and delivery of merchandise, not including cost of goods sold and contra revenue accounts
  • Net income
    Gross profit - General and administrative expenses - Selling expenses
  • Net loss
    Gross profit - General and administrative expenses - Selling expenses (when result is negative)