Accounting Unit 2 - Chapter 1-3

Accounts Payable

business name not on top in the document indicating money owed to suppliers or vendors.

Accounts Receivable

Business name on top in the document indicating money owed by customers or clients.

Inventory Stock Card

Records any addition or subtraction of inventory.

Cost of Sales

Calculated by adding the cost of sales in the CRJ to the cost of sales in the SJ.

Inventory

Not included in the income statement as it is already calculated in the stock card.

Cost of Goods Sold

Cost of sales plus additional costs to prepare inventory for sale.

Gross Profit

Profit after deducting production or service costs.

GPM (Gross Profit Margin)

Percentage of revenue that is actual profit before operating costs.

Mark-up

Relationship between selling price and cost price.

Stock Turnover (STO)

Average time for stock to be sold in days.