Upgrade to remove ads
Only $2.99/month

Chapter 17

Terms in this set (16)

income statement
used to summarize all income and expenses for a company for a given period of time
gross sales
total amount of money received from customers
returns
returns made by customers
net sales
value of goods and services bought and kept by customers
gross profit
money left over after a firm pays for the cost of goods it sells
operating expenses
the firm's cost to run the business
net income before taxes
amount earned by the firm before taxes are paid
net income
income remaining after income taxes have been paid
business owners and managers
must keep careful records of the expenses and income of their business
accountants
the employees who do the work of keeping track of income and expenses
consolidated
show combined results from all the subsidiary companies
initial inventory
at-cost value of all goods on hand for sale at the beginning of the period
ending period
at-cost value of all goods on hand for sale at the end of the period
vertical analysis
listing each of the important items on the income statement as a percent of net sales in a process
horizontal analysis
finds percents of change between the current time period and a previous time period
cost of goods sold
amount paid by the firm for the items sold to customers
YOU MIGHT ALSO LIKE...