Define in own words please CHAPTER 6 – Accounting for Merchandising Businesses Asset turnover Cost of merchandise sold –...

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Accounting

Define in own words please
CHAPTER 6 – Accounting forMerchandising Businesses
Asset turnover
Cost of merchandise sold – (5 points extra – if you can tell mewhat this is also known as) You will hear this acronym more oftenthan Cost of merchandise sold…
Credit memo
Credit terms
Debit memo
FOB (free on Board) destination
FOB (free on board) shipping point
Gross profit
Operating income
Invoice
Purchases discounts
Purchases returns and allowances
Sales discounts
Trade discounts
Administrative expenses (general expenses)

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Asset turnover Asset turnover is an efficiency ratio which measures the number of times the assets are generating turnover in the business Asset turnover Sales revenueTotal assets Cost of merchandise sold The cost of merchandise is the cost of sales during the period The cost can be assigned based on FIFO LIFO weighted average or specific identification method Cost of merchandise sold Opening Inventory Net Purchases Closing inventory Credit Memo A credit memo is a document given by seller to buyer for sales See Answer

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