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C21 Accounting Ch 18 - Vocabulary

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Answer
An organization with the legal rights of a person and which may be owned by many persons.   Corporation  
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Each unit of ownership in a corporation   Share of stock  
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The total shares of ownership is a coporation.   Capital stock  
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A journal used to record only one kind of transaction   Special journal  
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A special journal to record only purchases of merchandise on account.   Purchases journal  
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A petty cash on hand amount that is more than a recorded amount   Cash over  
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A reduction in the list price granted to customers   Trade discount  
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A form prepared by the customer showing the price deduction taken by the customer for returns and allowances   Debit memorandum  
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A journal with two amount columns in which all kinds of entries can be recorded   General journal  
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Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customers accounts payable   Purchases return  
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A deduction from the invoice amount, allowed by a vendor to encourage early payment   Cash discount  
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A business's printed or catalog price   List price  
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A cash discount on purchases taken by a customer   Purchases discount  
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A petty cash on hand amount that is less than a recorded amount   Cash short  
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An account that reduces a related account on a financial statement   Contra account  
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Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customers accounts payable   Purchases allowance  
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A special journal used to record only cash payment transactions   Cash payments journal  
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Created by: Mrs Holcomb
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