ACCT 2001 Chapter : Chapter 5 Notecards
Document Summary
An account that is offset against a revenue account on the income statement. The total cost of merchandise sold during the period. The excess of net sales over the cost of goods sold. Gross profit expressed as a percentage by dividing the amount of gross profit by net sales. Sales less sales returns and allowances and sales discounts. An inventory system in which a company does not maintain detailed records of goods on hand throughout the period and determines the cost of goods sold only at the end of an accounting period. A detailed inventory system in which a company maintains the cost of each inventory item, and the records continuously show the inventory that should be on hand. Measures the percentage of each dollar of sales that results in net income, computed by dividing net income by net sales.
