29 terms

Chapter 9 Accounting Terms

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Terms in this set (...)

Merchandise
Goods that a business purchases to sell
Merchandising Business
A business that purchases and sells goods
Retail Merchandising Business
A merchandising business that sells to those who use or consume the goods
Wholesale Merchandising Business
A business that buys and resells merchandise to retail merchandising businesses
Corporation
An organization with the 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 of a corporation
Special Journal
A journal used to record only one kind of transaction
Cost of Merchandise
The price a business pays for goods it purchases to sell
Markup
the amount added to the cost to determine the asking price
Vendor
a business from which merchandise is purchased or supplies or other assets are bought
Purchase on Account
A transaction in which the merchandise purchased is to be paid for later
Purchase Journal
a special journal used to record only purchaces 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
Cash Payments Journal
a 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
Purchase Discount
a cash discount on purchases taken by a customer
General Amount Column
a journal amount column that is not headed with an account title
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
an account that reduces a related account on a financial statement
Cash Short
a petty cash on hand amount that is less than a recorded amount
Cash Over
a petty cash on hand amount that is more than a recorded amount
Purchase Return
A return of goods from the buyer to the seller for cash or credit
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