Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
V's accountingterms7
Chapter 7
| Question | Answer |
|---|---|
| Contra Revenue Account | An account with a debit balance, which is contrary to the normal balance for a revenue account |
| Control Account | An account that links a subsidiary ledger and the general ledger since its balance summarizes the balances of the accounts in the subsidiary ledger |
| Credit Memorandum | A note verifying that a customer's account is being reduced by the amount of a sales return or sales allowance plus any sales tax that may have been involved |
| Invoice | A customer billing for merchandise bought on credit |
| List Price | An established retail price |
| Manufacturing Business | A business that sells goods purchased for resale |
| Net Price | The list price less all trade discounts |
| Net Sales | The difference between the balance in the Sales account and the balance in the Sales Returns and Allowances account |
| Open-Account Credit | A system That allows the sale of services or goods with the understanding that payment will be made at a later date |
| Retail Business | A business that sells directly to individual customers |
| Sales Allowance | A reduction in the price originally charged to customers for goods or services |
| Sales Journal | A special journal used to record sales of merchandise on credit |
| Sales Return | A firm's acceptance of a return of goods from a customer |
| Sales Returns and Allowances | A contra revenue account where sales return and sales allowances are recorded; sales returns and allowances are subtracted from sales to determine net sales |
| Schedule of Accounts Receivable | A listing of all balances of the accounts in the accounts receivable subsidiary ledger |
| Service Business | A business that sells services |
| Special Journal | A journal used to record only one type of transaction |
| Subsidiary Ledger | A ledger dedicated to accounts of a single type and showing details to support a general ledger account |
| Trade Discount | A reduction from list price |
| Wholesale Business | A business that manufactures or distributes goods to retail businesses or large consumers such as hotels and hospitals |
Created by:
Virajasaur
Popular Accounting sets