Exam 1: Ch1-3 Flashcards
1
Q
Gross profit is
A
Net sales - COGS
2
Q
FOB Shipping Point:
A
Title transfers @ shipping point + BUYER pays shipping costs
3
Q
In FOB shipping point, who has ownership?
A
buyer
4
Q
FOB destination
A
Title transfers @ destination + SELLER pays shipping costs
5
Q
In FOB destination, who has ownership?
A
seller
6
Q
Perpetual inventory system
A
updates account records for EACH purchase and sale of inventory
* it is “live”
7
Q
Periodic inventory system
A
Updates account records for purchases + sales of inventory @ END of period
8
Q
LIFO
A
Last In First Out
9
Q
FIFO
A
First In First Out
