| Question |
Answer |
| The ___ is the actual cost of the business of the merchandise to be sold to customers |
Cost of Merchandise |
| A(n) ___ contains a folder for each day of the month. |
Tiokler file |
| A(n) __ is the period of time within which an invoice must be paid if a discount is to be taken |
Discount period |
| A(n) __ is a written offer to a supplier to buy certain items. |
Purchase Order |
| The _____ is a ledger that contains acounts for all creditors and the amount owed to each. |
Accounts Payable Subsidiary Ledger |
| A(n) ___ is a stamp placed on an invoice that outlines a set of steps to be followed in processing the invoice for payment. |
Processing Stamp |
| The ____ is the account used to record the cost of new merchandise |
Purchases Account |
| A written request that a certain item or items be ordered is a(n) ____ |
Purchase Requisition |
| The ____ is the date by which an invoice must be paid. |
Due Date |
| A bill that lists the credit terms and the quantity, description, unit price, and total cost of the items shipped to the buyer is a(n) ____ |
Invoice |
| A form that lists the items included in a shipment is a(n) ____ |
Packing Slip |
| A(n) ____ is a cash discount offered by suppliers for prompt payment. |
Purchases Discounts |
| A(n) _____ is charged by a bank for handling the bankcard sales slip deposited by a business; it is usually calculated as a percentage fo the total bankcard sales. |
bankcard fee |
| _____ means that the supplier pays the shipping cost to the buyer's destination or location. |
FOB destination |
| The ____ is the amount paid for insurance. |
Premium |
| The cost of merchandise account that is used to record shipping charges on goods is the _____ |
Transportation In account |
| When a business returns merchandise bought on account to the supplier for full credit, a(n) occurs___ |
Purchases return |
| _____ means that the buyer pays the shipping charge from the supplier's place |
FOB Shipping Point |
| A price reduction received by a business for unsatisfactory merchandise kept is a(n) ___ |
Purchases Allowance |
| The form a business uses to notify its supplier of a return or allowance is called a(n) _____ |
Debit Memorandum |
| The purchases account has a normal ____- balance |
Debit |
| The Transportation Account has a normal ____ balance |
Debit |
| The Purchases Account is categorized as a ______ type of account. |
Cost of Merchandise |
| The Transportation Accounts is categorized as a _______ type of account. |
Cost of Merchandise |
| Purchase Discounts is increased on the ____ side. |
Credit |
| Purchase Returns and Allowances is increased on the _______ side. |
Credit |
| Purchase Discounts is categorized as a(n) ____ type of account. |
Contra Cost of Merchandise |
| Purchase Returns & Allowances is categorzied as a(n) _____ type of account. |
Contra Cost of Merchandise. |
| A(n)____ is a special journal used for recording the sale of merchandise on account. |
Sales Journal |
| The _____ is the date by which the invoice must be paid if a discount is to be taken. |
Due Date |
| A(n) _____ is a separate ledger that contains accounts for all creditors. |
Accounts Payable Subsidiary Ledger |
| _____ is an account in the general ledger that controls the accounts receivable subsidiary ledger. |
Accounts Receivable |
| The ____ is a special journal used for recording all cash received by the business. |
Cash Receipts Journal |
| _____ is an account in the general ledger that controls the accounts payable subsidiary ledger. |
Accounts Payable. |
| The ____ is an all-purpose journal used for recording transactions that do not fit into a special journal. |
General Journal |
| The process of determining whether the amount of cash recorded in the accounting records of a business agrees with the amount recorded in its checkbooks is called _____. |
Proving Cash |
| A special journal used for recording all cash paid out of the business is the ______. |
Cash Payments Journal |
| The ____ is a separate ledger that contains all charge customers accounts. |
Accounts Receivable Subsidiary Ledger |
| The _____ is a special journal used for recording all purchases of assets on account. |
Purchase Journal |
| The ____ is a list of all creditors in the accounts payable subsidiary ledger, the balance of each account, and the total owed to all creditors |
Schedule of Accounts Payable |
| A(n) ___ is an account in the general ledger that acts as a control on the accuracy of the accounts in the subsidiary ledger. |
Controlling Account |