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Accounting chapter 5
Accounting 203 GMU - chapter 5
Question | Answer |
---|---|
Determine cost of goods sold under a periodic inventory system | beginning inventory + cost of goods purchased - ending inventory |
what is the cost of goods purchased? | purchases - purchase returns & allowances - purchase discount + fright in |
Gross profit Rate | Gross profit / net sales |
profit margin | net income / net sales |
quality of earnings ratio | net cash provided by operating activity / net income |
gross profit | sales revenue - cost of goods sold |
net income | gross profit - operating expenses |
FOB | Free On Board |
FOB Shipping point | buyer pays freight costs |
FOB Destination | Seller pays for freight costs |
what does a multi-step income statement have? | gross profit, income from operations, and net income. |
net sales | sales revenue - sales returns and allowances - sales discount |