Enter the letter for each term in the blank space beside the definition that it most closely matches. Sales discount Credit period Discount period FOB destination FOB shipping point Gross profit Merchandise inventory Purchase discount Cash discount Trade discount _______ 1.Goods a company owns and expects to sell to its customers. _______ 2.Time period that can pass before a customer’s payment is due. _______ 3.Seller’s description of a cash discount granted to buyers in return for early payment. _______ 4.Reduction below list or catalog price that is negotiated in setting the price of goods. _______ 5.Ownership of goods is transferred when the seller delivers goods to the carrier. _______ 6.Purchaser’s description of a cash discount received from a supplier of goods. _______ 7.Reduction in a receivable or payable if it is paid within the discount period. _______ 8.Difference between net sales and the cost of goods sold. _______ 9.Time period in which a cash discount is available. _______ 10.Ownership of goods is transferred when delivered to the buyer’s place of business
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Enter the letter for each term in the blank space beside the definition that it most closely matches.
- Sales discount
- Credit period
- Discount period
- FOB destination
- FOB shipping point
- Gross profit
- Merchandise inventory
- Purchase discount
- Cash discount
- Trade discount
|
_______ |
1.Goods a company owns and expects to sell to its customers. |
|
_______ |
2.Time period that can pass before a customer’s payment is due. |
|
_______ |
3.Seller’s description of a cash discount granted to buyers in return for early payment. |
|
_______ |
4.Reduction below list or catalog price that is negotiated in setting the price of goods. |
|
_______ |
5.Ownership of goods is transferred when the seller delivers goods to the carrier. |
|
_______ |
6.Purchaser’s description of a cash discount received from a supplier of goods. |
|
_______ |
7.Reduction in a receivable or payable if it is paid within the discount period. |
|
_______ |
8.Difference between net sales and the cost of goods sold. |
|
_______ |
9.Time period in which a cash discount is available. |
|
_______ |
10.Ownership of goods is transferred when delivered to the buyer’s place of business. |
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