a complete listing of merchandise or stock on hand, work in progress, raw materials, finished good on hand
Periodic Inventory System
A method of inventory valuation for financial reporting purposes where a physical count of the inventory is performed at specific intervals.
Perpetual Inventory System
updates inventory accounts after each purchase or sale.
A detailed list of goods shipped rendered, with an account of all costs; an itemized bill.
Income from sales of goods and services, minus the cost associated with the things like returned or undeliverable merchandise.
Cost of Goods Sold
cost of beginning inventory plus costs of goods purchased plus freight in minus cost of ending inventory.
Sales Returns and Allowances
A contra revenue account that reports merchandise returned by a customer, and the allowances granted to a customer because the seller shipped improper or defective merchandise.
A contra revenue account that reports the discounts allowed by the seller if the customer pays the amount owed within a specified time period.
Net Sales Revenue
Operating revenues earned by a company when it sells its products
Gross Profit/Gross Margin
Net sales revenue minus the cost of goods sold. The percentage of gross profit dollars divided by net sales dollars.
consist of selling and administrative expense. They are deducted from gross profit to arrive at income from operations.
A company's profit before non operating or other items.
Multi-step Income Statement
An income statement that has more than one subtraction in arriving at net income.
Single-step Income Statement
The income statement format where the operating and non operating revenues are grouped and totaled and the operating and non operating expense are grouped and totaled.
Gross Profit Percentage
dollars of gross profit divided by the dollars of net sales.
this ratio relates the costs in inventory to the cost of the goods sold.