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Accounting - 9
| Question | Answer |
|---|---|
| merchandise | Goods that a business purchases to sell. |
| merchandising business | A business that purchases and resells goods |
| retail merchandising business | A merchandising business that sells to those that use or consume the goods. |
| wholesale merchandising business | business that 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. |
| Capital | The assets or other financial resources available to a business. |
| share of stock | The 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, which is a part of the application submitted to a state to become a corporation. |
| charter | A state approves the formation of a corporation by issuing a 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. Accountants often refer to a subsidiary ledger as a subledger. |
| 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 hands 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 | A periodic inventory 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 sells merchandise to a vendor. |
| 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 about 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 on a catalog or 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 isn't headed with an account title |
| discount period | a 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 venor |
| schedule of accounts payable | A listing of vendor accounts, account balances, and the total amount due to all vendors. Some businesses call this listing an accounts payable trial balance. |
| controlling account | an account in a general ledger that summarizes all accounts in a subsidiary ledger |
Created by:
Molly.erwin