Accounting Ch. 9
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Created by:
Covergirl94 on April 18, 2011
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21 terms
Terms | Definitions |
|---|---|
 Corporation | Organization that has legal rights of a person and which many persons 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 in a corporation |
| Cost of Merchandise | Price a business pays for goods it purchases to sell |
| Markup | 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 | Transaction in which the merchandise purchased is to be paid for later. |
| Purchase Invoice | Invoive used as a source document for recording a purchase on account transaction |
| Terms of Sale | Agreement between a buyer and a seller about payment for merchandise. |
| Cash Payments Journal | 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 | Cash discount on purchases taken by a customer |
| 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 | Account that reduces a related account on a financial statement. |
| 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. |
| Debit Memorandum | A form prepared by the customer showing the price deduction taken by the customer for returns and allowances. |
| Cash Short | Debit Column |
| Cash Over | Credit Column |
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