CHapter 11 accounting

Term

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Board of Directors

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Terms in this set (11)

Board of Directors

A group or persons elected by the stockholders to govern a corporation

Credit memorandum

A form prepared by the vendor showing the amount deducted for returns and allowances

Debit memorandum

A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance

Declaring a dividend

Action by a board of directors to distribute corporate earnings to stockholders

Earnings distributed to stockholders

General journal

A journal with two amount columns in which all kinds of entries can be recorded

Purchases allowance

Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's account payable to the vendor

Purchases return

Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's account payable to the vendor

Retained earnings

An amount earned by a corporation and not yet distributed to stockholders

Sales allowance

credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business