18 terms

Accounting Merchandising Business Vocabulary

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Corporation
an organization made up of stockholders
Periodic inventory
inventory evaluated at the end of a fiscal period
Perpetual inventory
inventory kept through continuous record keeping
Merchandise
goods that are sold in the store
Share of stock
a unit of ownership in a corporation
Purchase order
form requesting the order of merchandise
Cash discount
a deduction that a vendor takes for prompt payment
Controlling account
an account in the general ledger that summarizes all accounts in the subsidiary ledger
Credit limit
amount a company can borrow up to
Special journal
purchases Journal, Cash Payments Journal, Cash Receipts Journal and Sales Journal are examples.
Interest rate
an amount paid for the use of money in a specific timeframe
2/10, n/30
a 2% discount taken if the bill is paid within 10 days
Schedule of Accounts Payable
a listing of all the companies we owe money to
Petty cash
cash kept on hand for small purchases
Contra account
an account that reduces a related account such as a purchase discounts reduces how much will be paid to the vendor
Vendor
supplier of merchandise
Cash short
cash on hand is less than the recorded amount
Cash over
cash on hand is more than the recorded amount