Chapter5Terms

Chapter5Terms - Contra-revenue account An account that is...

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Contra-revenue account An account that is offset against a revenue account on the income statement. Cost of goods sold The total cost of merchandise sold during the period. FOB destination Freight terms indicating that the seller places the goods free on board to the buyer's place of business, and the seller pays the freight. FOB shipping point Freight terms indicating that the seller places goods free on board the carrier, and the buyer pays the freight costs. Gross profit The excess of net sales over the cost of goods sold. Gross profit rate Gross profit expressed as a percentage, by dividing the amount of gross profit by net sales. Income from operations Income from a company's principal operating activity; determined by subtracting cost of goods sold and operating expenses from net sales. Multiple-step income statement An income statement that shows several steps in determining net income. Net sales
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This note was uploaded on 10/21/2011 for the course ACCT 272 taught by Professor Mensah during the Fall '08 term at Rutgers.

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Chapter5Terms - Contra-revenue account An account that is...

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