Describe NCP

question 7

Essay

Describe NCP.

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Definitions:

Sales Discounts

Reductions from the listed or invoice price of goods or services, provided by the seller as an incentive for early payment by the buyer.

Cost of Goods Sold

Expenses directly linked to manufacturing goods for sale, covering both the cost of materials used and the wages for labor.

Closing Process

The year-end procedure used in accounting to transfer balances from temporary accounts to permanent accounts, preparing the books for the next fiscal period.

Selling Expenses

Costs incurred directly and indirectly in making sales, including advertising, commissions, and salaries of sales staff.