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Accounting stuff
accounting stuff
Term | Definition |
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Merchandise | Goods that a business purchases to sell |
merchandising buisness | a business the purchases and sells goods |
retail merchandising buisness | a merchandising business that sells to those who use or consume the goods |
wholesale merchandising buisness | a business that buys and resells merchandise to retail merchandising businessess |
corporation | an organization with the legal rights of a person and which many people may own |
share of stock | each unit of ownership in a corporation |
capital stock | total shares of ownership in a corporation |
stockholder | an owner of one or more shares of a coroporation |
special journal | a journal used to record only one kind of transaction |
cost of merchandise | the price a business pays for goods it purchases to sell |
markup | the amount added to the cost of merchandise to establish the selling price |
vendor | a business from which merchandise is purchased or supplies or other assets are brought |
purchase on account | a transaction in which the merchandise purchased is to be paid for later |
purchases journal | a special journal used to record only purchases of merchandise on account |
special amount column | a journal amount column headed with an account title |
purchase invoice | an invoice used as a source document for recording a purchase on account transaction |
terms of sale | an agreement between a buyer and seller about payment for merchandise |
cash payment jounal | a special journal used to record only cash payment transactions |
cash discount | a deduction that a vendor allows on the invoice amount to encourage prompt payment |
purchases discount | a cash discount on purchases taken by a customer |
general amount column | a journal amount column that is not headed with an account title |
list price | the retail price listed in a catalog or on an internet site |
trade discount | a reduction in the list price granted to customers |
contra account | an account that reduces a related account on a financialc statement |
cash short | a petty cash on hand amount that is less than a record amount |
cash over | a petty cash on hand amount that is more than a recorded amount |
purchases return | credit allowed for the purchase price of returned merchandises, resulting in a decrease in the customer's account payable |
purchases allowance | credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's accounts payable |
debit memorandum | a form prepared by the customer showing the price deduction taken by the customer for returns and allowances |