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Accounting Chap 9
Vocab
| Term | Definition |
|---|---|
| Retail Merchandising Business | A merchandising business that sells to those who use or consume the goods. |
| Wholesale Merchandising Business | Buys and resells merchandise primarily to other merchandising businesses. |
| Corporation | An organization with the legal rights of a person which many persons or other corporations may own. |
| Share of Stock | Each unit of ownership in a corporation. |
| Stockholder | The owner of one or more shares of stock. |
| Perpetual Inventory | An inventory determined by keeping continuous records of increases, decreases, and the balance on hand of each item of merchandise. |
| Periodic Inventory | A merchandise inventory evaluated at the end of a fiscal period. |
| Purchase Order | A form requesting that a vendor sell merchandise to a business. |
| Terms of sale | An agreement between a buyer and a seller about payment for merchandise. |
| Cash Discount | A deduction that a vendor allows on an invoice amount to encourage prompt payment. |