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HHS Accounting Ch9
Terms for Chapter 9 - Century 21, General Journal 10e
Term | Definition |
---|---|
Merchandise | Goods that a business purchases in order to sell. |
Merchandising Business | A business that purchases and resells goods. |
Wholesale Merchandising Business | A business that buys and resells merchandise primarily to other merchandising businesses. |
Retail Merchandising Business | A merchandising business that sells to those who use or consume the goods. |
Corporation | An organization with the legal rights of a person which many persons or other corporations may own. |
Capital | The assets or other financial resources available to a business. |
Share of Stock | Each unit of ownership in a corporation. |
Stockholder | The owner of one or more shares of stock. |
Capital Stock | The total shares of ownership in a corporation. |
Articles of Incorporation | A legal document that identifies basic characteristics of a corporation. |
Charter | The legal right for a business to conduct operations as a corporation. |
Vendor | A business from which merchandise, supplies, or other assets are purchased. |
Subsidiary Ledger | A ledger that is summarized in a single general ledger account. |
Accounts Payable Ledger | The subsidiary ledger containing vendor accounts. |
Controlling Account | An account in a general ledger that summarizes all accounts in a subsidiary ledger. |
Inventory | A list of assets, usually containing the value of individual items. |
Merchandise Inventory | The goods a business has on hand for sale to customers. |
Perpetual Inventory | An inventory determined by keeping a continuous record 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. |
Physical Inventory | When a periodic inventory is conducted by counting, weighing, or measuring items of merchandise on hand. |
Cost of Merchandise | The amount a business pays for goods it purchases to sell. |
Requisition | A form requesting the purchase of merchandise. |
Purchase Order | A form requesting that a vendor sell merchandise to a business. |
Special Journal | A journal used to record only one kind of transaction. |
Purchase on Account | A transaction in which the items purchased are 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 a seller aboutn payment for merchandise. |
Due Date | The date by which an invoice must be paid. |
Cash Payments Journal | A special journal used to record only cash payment transactions. |
List Price | The retail price listed in a catalog or on an Internet site. |
Trade Discount | A reduction in the list price granted to a merchandising business. |
Net Price | The price after the trade discount has been deducted from the list price. |
Cash Discount | A deduction that a vendor allows on an invoice amount to encourage prompt payment. |
General Amount Column | A journal amount column that is not headed with an account title. |
Discount Period | The period of time during which a customer may take a cash discount. |
Purchases Discount | When a company that has purchased merchandise on account takes a cash discount. |
Contra Account | An account that reduces a related account on a financial statement. |
Credit Limit | The maximum outstanding balance allowed to a customer by a vendor. |
Schedule of Accounts Payable | A listing of vendor accounts, account balances, and the total amount due to all vendors. |