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jk Acct I Unit 4
AR Accounting I Unit 4
Question | Answer |
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Accounts payable ledger | a subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account |
Accounts receivable ledger | a subsidiary ledger containing only accounts for charge customers |
Batch report | a report which gives performance information over a specific date range |
Batching out | closing out all the transactions on the system that were processed for a particular day |
Capital stock | total amount of a firm's capital, represented by the value of its issued common and preferred stock (ordinary and preference shares) |
Corporation | business that meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct from its owners |
Cash discount | incentive offered by a seller to a buyer for settling the invoice immediately on delivery or in a period substantially shorter than the conventional period in that industry or market. |
Cash receipt journal | journal in which all cash receipts and payments (including bank deposits and withdrawals) are recorded first, in chronological order, for posting to general ledger |
Cash over | a petty cash on hand amount that is more than a recorded amount. |
Cash sale | a sale in which cash is received for the total amount of the sale at the time of the transaction |
Cash short | a petty cash on hand amount that is less than a recorded amount. |
Contra account | an account that reduces a related account on a financial statement |
Controlling account | an account in a general ledger that summarizes all accounts in a subsidiary ledger |
Cost of merchandise | the price a business pays for goods it purchases to sell |
Cost of merchandise sold (goods) | the total original price of all merchandise sold during a fiscal period |
Credit card sale | a sale in which a credit card is used for the total amount of the sale at the time of the transaction |
Credit memorandum -form or letter sent by a seller to a buyer, stating that a certain amount has been credited to the buyer's account. | |
Current assets | any asset expected to last or be in use for less than one year |
Customer | a person or business to which merchandise or services are sold |
Debit memorandum | form or letter issued by a seller to advise the amount owed by the buyer |
Distribution-of-net-income statement | a partnership financial statement showing net income or loss distribution to partners |
General amount column | a journal amount column that is not headed with an account title. |
Gross profit on sales | the revenue remaining after cost of merchandise sold has been deducted |
Historical cost concept | the actual amount paid for merchandise or other items bought is recorded |
Inventory | the amount of goods on hand |
List price | the retail price listed in a catalog or on an Internet site. |
Markup | the amount added to the cost of merchandise to establish the selling price |
Merchandise | goods that a merchandising business purchases to sell |
Merchandise inventory | the amount of goods on hand for sale to customers |
Owner's equity statement | a financial statement that summarizes the changes in owner's equity during a fiscal period |
Partner | each member of a partnership |
Plant assets | assets that will be used for a number of years in the operation of a business |
Purchase invoice | an invoice used as a source document for recording a purchase on account transaction |
Point-of-sale (POS) terminal | a computer used to collect, store, and report all the information of a sales transaction |
Purchases discount | a cash discount on purchases taken by a customer. |
Purchases return | credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts 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 |
Retail merchandising business | a merchandising business that sells to those who use or consume the goods |
Retained earnings | an amount earned by a corporation and not yet distributed to stockholders |
Sales discount | a cash discount on sales |
Sales journal | a special journal used to record only sales of merchandise on account |
Sales return | credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor's accounts receivable |
Sales allowance | credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor's accounts receivable. |
Sales tax | a tax on a sale of merchandise or services |
Schedule of accounts payable | a listing of vendor accounts, account balances, and total amount due all vendors |
Schedule of accounts receivable | a listing of customer accounts, account balances, and total amount due from all customers |
Share of stock | each unit of ownership in a corporation |
Stockholder | an owner of one or more shares of a corporation |
Special amount column | a journal amount column headed with an account title |
Subsidiary ledger | a ledger that is summarized in a single general ledger account |
Supporting schedule | a report prepared to give details about an item on a principal financial statement |
Terms of sale | an agreement between a buyer and a seller about payment for merchandise |
Terminal summary | the report that summarizes the cash and credit card sales of a point-of-sale terminal |
Trade discount | a reduction in the list price granted to customers. |
Vendor | a business from which merchandise is purchased or supplies or other assets are bought |
Wholesale merchandising business | a business that buys and resells merchandise to retail merchandising businesses |