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Argylls Acc Ch. 9
Question | Answer |
---|---|
Goods that a business purchases to sell | Merchandise |
A business that purchases and sells goods | Merchandising Business |
A business that buys and resells merchandise to retail merchandising businesses | Wholesale merchandising business |
An organization with the legal rights of a person and could have many owners | Corporation |
Each unit of ownership in a corporation | Share of stock |
An owner of shares in a corporation | Stockholder |
A journal used to record only one type of transaction | Special journal |
Journal used for all purchases of merchandise on account | Purchases journal |
Journal used when you pay cash | Cash Payments journal |
Journal used for all sales of merchandise on account | Sales journal |
Journal used when you receive cash | Cash receipts journal |
Non-special journal | General journal |
The price a business pays for goods it purchases to sell | Cost of merchandise |
The amount added to the cost of merchandise to establish the selling price | Markup |
A business from which merchandise is purchased | Vendor |
The normal balance side of the Purchases account | Debit |
A journal column headed with an account title | Special amount column |
Source used when you have a purchase on account | Purchase invoice |
A deduction a vendor allows on the invoice amount to encourage prompt payment | Cash discount |
A cash discount on purchases by the customer | Purchases discount |
A journal column that is not headed by an account title | General column |
A retail price listed in a catalog or Internet | List price |
A reduction in the list price | Trade discount |
The "n" of 2/10, n/30 stands for this | Net |
An account that reduces a related account on a financial statement | Contra account |
A contra account of purchases | Purchases Discount |
A petty cash on hand amount that is less than a recorded amount | Cash short |
A petty cash on hand amount that is more than a recorded amount | Cash over |
Trying to get your debit and credit totals of a journal to equal | Proving the journal |
Credit allowed for the purchase price of returned merchandise | Purchases return |
A form prepared by the customer showing the price reduction taken by a customer for returns and allowances | Debit memorandum |