What is meant by general price level changes? Price changes that measure fluctuations in the ability of the dollar to purchase a variety of goods and services are called general price level changes.
What is Gross Margin Method? A method used to estimate the value of inventory, by which firms estimate their ending inventory without taking an actual count. It is based on the firm’s gross margin percentage.
What is the gross method of recording sales discounts? A method or recording sales discounts, in which the sales and the receivable are recorded at the gross amount before any discount is called the gross method of recording sales discount.
What is the gross method of recording purchase discounts? Gross method of recording purchase discounts is the method in which the purchase and the payable are recorded at the gross amount, before any discount. Explanation The gross method of recording purchase discounts records the purchase and the payable at the gross amount before any discount. …
How to Define the term Goods on Consignment? Goods on Consignment are those goods held by a firm for release, but which title remains with the manufacturer or owner of the product. Explanation In effect, the merchandiser has agreed to display the goods but, for a variety of reasons, is not willing to purchase them. …
What is the Gross Margin Percentage formula? Gross Margin Percentage is the gross margin divided by the sales. Gross Margin % = Gross Margin / Sales
What is Gross Margin on Sales? Gross Margin on Sales is the sales minus the cost of goods sold. Gross Margin on Sales = Sales – Cost of Goods Sold
What is meant by Accounting Term “Gains”? Gains may be defined as a firm’s increase in equity (not assets) during a set period from all activities ( except for revenues and investments by owners).
What is meant by Governmental Accounting? Governmental Accounting is the practice of accounting as it relates to governmental organizations.
What is the Going Concern Assumption? Going Concern Assumption is that unless there is evidence to the contrary, a firm will be in existence long enough to use these assets and derive their benefits.
What are Generally Accepted Accounting Principles (GAAP)? GAAP are the concepts and standards underlying accounting for financial reporting purposes.
Definition The things which are manufactured for selling purpose or bought for reselling purpose are known as goods or merchandise. Example Cloth is goods or merchandise for a cloth dealer. Cement is goods or merchandise for a cement dealer. Furniture is goods or merchandise for a furniture vendor. If these items are manufactured or bought …
Goal congruence exists when individuals and groups work towards the organization goals that top management desires.