Selling expenses General and administrative expenses FOB shipping point Trade discount Single-step income statement Acid-test ratio Multiple-step income statement Inventory shrinkage FOB destination Merchandise inventory An income statement format that shows detailed computations of net sales and other costs and expenses, and reports subtotals for various classes of items A measure of a company's ability to pay its current liabilities that excludes less liquid current assets such as inventory and prepaid expenses. The point of transfer from seller to buyer that takes place when goods depart the sellers place of business A widely used income statement format that lists cost of goods sold as another expense and shows only one subtotal for total expenses Products a company owns and intends to sell A given percent deducted from a list price often granted to customers purchasing large quantities of merchandise The point of transfer from seller to buyer that takes place when the goods arrive at the buyer's place of business Inventory losses that can occur as a result of theft or deterioration and require an adjusting entry to account for those losses