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Accounting 9-1
Accounting chapter 9
Question | Answer |
---|---|
Merchandise | Goods that a business purchases to sell |
Merchandising business | A business that purchases and sells goods |
Retail merchandising business | A merchandising business that sells to those who use or consume the goods |
Wholesale merchandising business | A business that buys and resells merchandise to retail merchandising businesses |
Corporation | A separate legal entity, usually owned by many people |
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 corporation |
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 |
Mark up | 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 bought |
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 |
Purchases account normal balance side is what? | Debit |
Purchases account increases with a what? | debit |
Purchases account is a nominal or what kind of account? | temporary |
Terms of sale | An agreement between buyer and seller about payment for merchandise |
1/10, n/30 means what on an invoice? | If the buyer pays within 10 days of the invoice date, they will save 1%. If not, the total invoice is due in 30 days |
Purchases | The account used for recording the cost of merchandise |