| A | B |
|---|
| Sales | Total dollar amount collected for goods and services provided |
| Cost of Goods Sold | The direct costs attributable to the production of the goods sold by a company |
| Gross profit | Amount of revenue from sales less the cost of goods |
| Periodic inventory | Merchandise inventory determined by counting, weighing, or measuring items of merchandise on hand |
| Perpetual inventory | Merchandise inventory determined by keeping a continuous record of increases, decreases, and balance on hand |
| Gross profit method of estimating an inventory | Estimating inventory by using the previous year’s percentage of gross profit on operations |
| Retail method of estimating inventory cost | Used by retailers who maintain merchandise records in both cost and retail prices |
| Interim period | A period of time less than a year; usually quarterly |
| Departmental Statement of Gross Profit | A statement showing gross profit for each department |
| Component percentage | The percentage relationship between one financial statement item and the total that includes that item |
| Departmental/Contribution Margin Statement | A statement that reports departmental margin for a specific department |
| Worksheet | A columnar accounting form used to summarize the general ledger information needed to prepare financial statements |
| Trial balance | A proof of the equality of debits and credits in a general ledger |
| Adjustment | Amount added to or subtracted from an account to bring its balance up to date |
| Departmental Income Statement column | An income statement prepared for each department of a departmentalized business |
