purchase inventory

purchase inventory - reduction in the purchase price so the...

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Purchase Return A return of goods from the buyer to the seller for cash or credit Net Sales Sales - Sales Returns and Allowances - Sales Discounts Sales Discount A reduction given by the seller for a prompt payment of a credit sale Purchase Invoice A document that supports each purchase Gross Profit The excess for net sales over the cost of goods sold Profit Margin Ratio Measures the percentage of each dollar of sales that results in net income Profit Margin Ratio Net Income/Net Sales Sales Invoice A document that provides support for each sale Quality of Earnings Ratio A measure used to indicate the extent to which a company's earnings provide a full nd transparent depiction for its performance Quality of Earnings Ratio Net cash provided by operating activities/net income Contra Revenue Account An account that is offset against a revenue account on the income statement Gross Profit Rate Gross profit expressed as a percentage Gross Profit Rate Gross Profit/Net Sales Sales Returns and allowances Transactions in which the seller either accepts goods back from the purchaser or grants a
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Unformatted text preview: reduction in the purchase price so the buyer will keep the goods Periodic Inventory System An inventory system in which a company does not maintain detailed records of goods on hand and determines the cost of goods sold only at the end of an accounting period Cost of Goods Sold The total cost of merchandise sold during the period Sales Revenue Primary source of revenue in a merchandising company Purchase allowance A deduction made to the selling price of merchandise, granted by the seller so the buyer will keep the merchandise Purchase Discount A cash discount claimed by the buyer for prompt payment of a balance due Perpetual Inventory System A detailed inventory system in which a mpany maintains the cost of each inventory item and the records continuously show the inventory that should be on hand FOB Shipping Point Buyer pays freight costs FOB Destination Seller pays freight costs...
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purchase inventory - reduction in the purchase price so the...

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