Inteirm Financial Statments
Covering one, three, or six months of activity.
Consisting of any 12 consecutive months.
Accural Basis Accounting
Uses the adjusting process to recognize revenues when earned and expenses when incurred (matched with revenues).
Refers to costs that are incurred in a period but are both unpaid and unrecorded.
Principal amount owed x annual interest rate x fraction of year since last payment date.
Refers to revenues earned in a period that are both unrecorded and not yet received in cash (or other assets).
Gross Profit( Gross Margin)
Equals net sales less cost of goods sold.
Free on Board
The point of transfer, which determines who pays transportation costs (and often other incidental costs of transit such as insurance).
Informs a buyer of the seller's credit to the buyer's Account Receivable (on the seller's books)..
Gross Margin Ratio
Net sales-Cost of goods sold)/Net sales