Study Guide Ch 4-5 - ← ←- Perpetual Inventory System...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Things To Study In CH’s. 4-5 27/02/2007 13:59:00 Ch. 4 - Annual Report The annual report has 4 major sections: o 1. Financial Statements o 2. Footnotes to Financial Statements o 3. Management’s Discussion and Analysis o 4. Auditors’ Report Ch. 5 - Income Statement for Merchandising Company (Multi-Step) Net Sales Revenue Cost of Goods Sold Gross Margin Operating Expenses o Advertising Expense o Salaries Expense o Supplies Expense Total Operating Expense Operating Income (Loss) Non-Operating Expenses o Interest Expense Net Income (Loss) - Product versus Period Costs Product Costs are Cost of Goods Sold
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Period Costs are Operating Expenses
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ← ←- Perpetual Inventory System • Method of accounting for inventories that increases the Inventory account each time merchandise is purchased and decrease it each time merchandise is sold. o Running book count o Know inventory loss ← ←- Freight Costs • Freight In = Transportation In • Delivery Expense = Transportation Out ← ←- Common size income statements, gross margin and return on sales (Net Income %) • Common size income statements • Gross Margin Gross Margin / Net Sales • Return on Sales Net Income / Net Sales ← 27/02/2007 13:59:00 ← 27/02/2007 13:59:00 ←...
View Full Document

This note was uploaded on 10/03/2011 for the course BUS 222 taught by Professor Jennings during the Spring '07 term at University of Maine Orono .

Page1 / 4

Study Guide Ch 4-5 - ← ←- Perpetual Inventory System...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online