Chapter 5 Vocab 1) Contra Revenue Account: An account that is offset against a revenue account on the income statement. 2) Cost of Goods Sold: The total cost of merchandise sold during the period. 3) Gross Profit: The excess of net sales over the cost of goods sold. 4) Gross Profit Rate: Gross profit expressed as a percentage, by dividing the amount of gross profit by sales. 5) Income from Operations: Income from a company’s principal operating activity; determined by subtracting cost of goods sold and operating expenses from net sales. 6) Multiple Step Income Statement: An income statement that shows several steps in determining net income. 7) Net Sales: Sales less sales returns and allowances and less sales discounts. 8) Nonoperating Activities : Various revenues, expenses, gains, and losses that are unrelated to a company’s main line of operations. 9) Operating Expenses : Expenses incurred in the process of earning sales revenues. 10) Other Expenses and Losses
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This note was uploaded on 11/14/2011 for the course ACCT 272 taught by Professor Mensah during the Fall '08 term at Rutgers.