1. In order for revenue to be recognized, it must be both _______________________ and ________________________.

2. Net sales less cost of goods sold equals ____________________________________.

3. Another term for income from operations is called ____________________________, and is calculated by taking gross profit less operating expenses.

4. Gross sales less sales discounts and sales returns & allowances are called ___________________________, and represent the revenues resulting from selling a product or service.

5. The most significant expense for most manufacturing companies and merchandising companies is called ___________________________________.

6. The calculation for gross margin (profit) ratio is ________________________________.

7. Expenses, other than cost of goods sold, that are incurred in the day-to-day activities of the entity are called ___________________________________.

8. _______________________ is the excess of revenues & gains over expenses & losses.

9. FOB _______________________ means title passes from seller to buyer when the merchandise being shipped arrives at its destination.

10. FOB _______________________ means title passes from seller to buyer when the merchandise being shipped leaves the sellers premises.