Flashcards in Chapter#5A: Financial Statements Deck (5)
What is the Purpose of the Income Statement?
To show how much income has been earned by the business during the time period.
What is Cost of Goods Sold?
it's calculated by adding the opening inventory and the net purchases and then subtracting the ending inventory
How are Net Purchases calculated?
By subtracting purchases, returns, allowances and purchase discount
What else is Gross Margin refereed as?
Gross Profit/Total Sales