To encourage a buyer to pay before the end of the credit period, the seller may offer a

Q: Which of the following accounts has a normal credit balance Chapter 6?

Liabilities, revenue, and owners capital accounts normally have credit balances.

Text
Problems
Goals Achievement
Fill in the Blanks
Multiple Choice
Glossary

Inhaltsverzeichnis Show

Is title to merchandise purchases passes to the buyer when the goods are delivered to the buyer the terms are?
What is the term applied to the excess of sales over the cost of goods sold?
Which of the following accounts has a normal credit balance Chapter 6?
Who is responsible for the freight cost when the terms are FOB destination quizlet?

cash discountA reduction in invoice price offered to customers to encourage prompt payment of invoices
cost of goods soldThe total cost attributed to units of inventory actually sold during a period
credit memorandumA seller-prepared document evidencing an approved return of merchandise for credit against an account
debit memorandumA purchaser-prepared document evidencing a return of merchandise to a seller
F.O.B. destinationFree on Board destination; meaning the transfer of ownership of inventory will occur when the goods reach their destination and the seller will incur the freight charges
F.O.B. shipping pointFree on Board shipping point; meaning the transfer of ownership of inventory will occur when the goods are shipped and the purchaser will incur the freight charges
goods available for saleA calculated amount corresponding to the beginning inventory plus net purchases; represents the total pool of inventory available during a period from which sales can occur
gross methodA method of recording purchases of inventory at invoice price
gross profitA calculated amount corresponding to net sales minus cost of goods sold
inventoryGoods held for resale to others
invoice priceList price less any trade discounts
list priceAn established price determined by reference to a catalog or general price list; before any discounts
multiple-step income statementA complex income statement with sections that segregate cost of goods sold calculations and other components of income and expense; enables enhanced evaluations of data
net methodA method of recording purchases of inventory at invoice price less available cash discounts
operating expensesGeneral expense category for selling and administrative costs
periodic inventory systemAn inventory system that utilizes a Purchases account and does not update inventory with each sale; inventory is updated by physical count at the end of accounting periods
perpetual inventory systemA "real-time" inventory system that updates inventory records with each purchase and sale
purchase discountsA cash discount available on purchases of merchandise on account; encourages prompt payment
sales discountsA cash discount offered to customers to encourage prompt payment of invoices
single-step income statementA simple income statement with a section for all revenues and another for all expenses; there is no direct association between specific revenue and expense components
trade discountA reduction from list price that is not entered in the accounting records; customarily offered in "setting" the invoice amount

4. To encourage a buyer to pay before the end of the credit period, the seller may offer aa. purchases discountb. payment discountc. sales discountd. trade discount

5. Under a perpetual inventory system

Get answer to your question and much more

6. When comparing a retail business to a service business, the financial statement that changesthe least is the

Get answer to your question and much more

End of preview. Want to read all 2 pages?

Upload your study docs or become a

Course Hero member to access this document

Professor

MARAL KIRKPATRICK

Is title to merchandise purchases passes to the buyer when the goods are delivered to the buyer the terms are?

Answer and Explanation: FOB shipping point means that as soon as the items are shipped from the seller that the title passes and the goods are now the responsibility of the buyer.

What is the term applied to the excess of sales over the cost of goods sold?

Excess of sales over cost of goods sold in an accounting period is termed as Gross Profit.

Which of the following accounts has a normal credit balance Chapter 6?

Liabilities, revenue, and owner's capital accounts normally have credit balances.

Who is responsible for the freight cost when the terms are FOB destination quizlet?

If goods are shipped FOB destination, who is responsible for the shipping costs? The seller is responsible. You just studied 61 terms!

To encourage a buyer to pay before the end of the credit period, the seller may offer a

Is title to merchandise purchases passes to the buyer when the goods are delivered to the buyer the terms are?

What is the term applied to the excess of sales over the cost of goods sold?

Which of the following accounts has a normal credit balance Chapter 6?

Who is responsible for the freight cost when the terms are FOB destination quizlet?

zusammenhängende Posts

What was mercantilism and why did the idea behind mercantilism encourage colonization?

Which industry sector inherently encourage small firm and entrepreneurship as well as having reduced obstacles?

Which food would the nurse encourage the client on a potassium wasting diuretic to consume

Werbung

NEUESTEN NACHRICHTEN

What delivers applications over the cloud using a pay-per-use revenue model?

What processes convert data into information and information into knowledge?

Fuß umgeknickt keine Schwellung aber Schmerzen was tun

What can decrease the effectiveness of an mbo (management by objectives) system?

Wie viel kostet ein normales Ohrloch stechen?

Ein Colt für alle Fälle Klingelton Android

Gemeinschaft entwässerung wer ist für zuständig

Was ist der unterschied zwischen einem boot und einem schiff

Wann geht es weiter mit Outpost?

Wer ist bei lets danz faisal

Werbung

Populer

Werbung

Um

Legal

Hilfe

Sozial