Accounting 11 SG9 Flashcards
Good it’s not a business purchases in order to sell?
Merchandise
A business that purchases and resell goods
Merchandising business
Merchandising business that sells to those who use or consume the goods
Retail merchandising business
A business that buys and resell merchandise primarily to other merchandising business
Wholesale merchandising business
An organization with the legal rights of a person which many persons or other corporations may own
Corporation
The assets are other financial resources available to a business
Capital
Each unit of ownership in a corporation
Share of stock
The owner of one or more shares of stock
Stockholder
The total shares of ownership in a corporation
Capital stock
Illegal document that identifies basic characteristics of a corporation
Articles of incorporation
The legal right for a business to conduct operations as a corporation
Charter
A business from which merchandise supplies or other assets are purchased
Vendor
A ledger that is summarized in a single general ledger account
Subsidiary ledger
The substitute ledger containing vendor accounts
Accounts payable ledger
An account in a general ledger that summarizes all accounts in a subsidiary ledger
Controlling account
A list of assets usually containing the value of individual items
Inventory
The goods of business has on hand for sale to customers
Merchandise inventory
An inventory determined by keeping a continuous record of increases decreases, and the balance on hand of each item of merchandise
Perpetual inventory
Merchandise inventory evaluated at the end of a fiscal period
Periodic inventory
When a periodic inventory is conducted by counting weighing or measuring items of merchandise on hand
Physical inventory
The amount of business pays for goods it purchases to sell
Cost of merchandise
A form requesting the purchase of merchandise
Purchase order
A transaction in which the item purchased are to be paid for later
Purchase
on account
A special journal used to record only purchases of merchandise on account
Purchase journal
An invoice use as a source document for recording a purchase on account transaction
Purchase invoice
The date by which an invoice must be paid
Due date
A special journal used to record only cash payment transactions
Cash payments journal
The retail price listed in a catalog or an Internet site
List price
The price after the trade discount has been deducted from the list price
Cash discount
A journal amount column that is not headed with an account title
General amount column
The period of time during which a customer may take a cash discount
Discount period
When a company that has purchased merchandise on account takes a cash discount
Purchases discount
An account that reduces a related account on a financial statement
Contra account
The maximum oats down thing balance allowed to accustom by a vendor
Credit limit
