Accounting Unit 16: Financial Statements and Closing Entries

Operating Revenue

Revenue earned by business from normal business operations

Net Sales

Amount of sales, less sales discount and sales, returns and allowances

Cost of Merchandise Sold

original price of all merchandise sold during fiscal period

Gross Profit

Operating revenue remaining after cost of merchandise sold has been deducted

Operating Expenses

expenses incurred by a business in its normal operating

Income from operations

operating, revenue remaining afer the cost of merchandise sold and operating expenses have been deducted

Statement of Stockholders equity

financial statement that shows changes in corporation ownership fro fiscal period

Par Value

Value assigned to a share of stock and printed on the stock certificate

Current Liabilites

Liabilities due within a short time, usually a year

Long-term libailites

liabilities owned for more than a year

Supporting Schedule

report prepared to give details about item on principal financial statement