Chapter 5 Accounting
In terms of liquidity, inventory is
More liquid than prepaid expenses
Gross profit is calculated by
Net sales minus cost of goods sold
Single step statement is classified in two categories...
Revenues and expenses
Net sales for the month is calculated by....
Sales - sales returns and allowances - sales discounts
Net sales equals...
Sales revenue minus the addition of sales returns and allowances plus the sales discount
Freight costs incurred by...
The seller on outgoing merchandise are an operating expense to the seller
FOB shopping point means
The sellers places the goods free on board the carrier
The one thing that is not true on a true statement about a multiple step income statement is...
There may be a section for operating assets
A key of walmart's incredible growth is its attribute to its sophisticated inventory system
...
If net sales are $700,000 and the cost of goods sold is $490,000, the gross profit percentage is
30%
On a classified balance sheet, inventory is classified as
A current asset
Income from operations appears on
A multiple step income statement
Gross profit does not appear on...
A single step income statement
Periodic inventory system is...
Companies don't keep detailed inventory records of goods on hand.
FOB stands for
Free on board
Gross profit is
Generated revenue minus the cost of goods sold
The multiple step that is not shown on a single step income statement is...
Gross profit
Gross profit rate equals
Gross profit divided by net sales