Accounting Chapter 9 Vocab Flashcards
Accounts Payable Ledger
the subsidiary ledger containing vendor accounts
Articles of Incorporation
a legal document that identifies basic characteristics of a corporation
Capital
the assets or other financial resources available to a business
Capital Stock
the total shares of ownership in a corporation
Charter
the legal right for a business to conduct operations as a corporation
Controlling Account
an account in a general ledger that summarizes all accounts in a subsidiary ledger
Corporation
an organization with the legal rights of a person which many persons or other corporations may own
Merchandise
goods that a business purchases in order to sell
Merchandising Business
a business that purchases and resells goods
Retail Merchandising Business
a merchandising business that sells to those who use or consume the goods
Share of Stock
each unit of ownership in a corporation
Stockholder
the owner of one or more shares of stock
Subsidiary Ledger
a ledger that is summarized in a single general ledger account
Vendor
a business from which merchandise, supplies, or other assets are purchased
Wholesale Merchandising Business
a business that buys and resells merchandise primarily to other merchandising businesses
Cash Discount
a deduction that a vendor allows on an invoice amount to encourage prompt payment
Cash Payments Journal
a special journal used to record only cash payment transactions
Contra Account
an account that reduces a related account on a financial statement
Cost of Merchandise
the amount a business pays for goods it purchases to sell
Credit Limit
the maximum outstanding balance allowed to a customer by a vendor
Discount Period
the period of time during which a customer may take a cash discount
Due Date
a date by which an invoice must be paid
General Amount Columns
a journal amount column that is not headed with an account title
Inventory
a list of assets, usually containing the value of individual items
List price
the retail price listed in a catalog or on an internet site
Merchandise Inventory
the goods a business has on hand for sale to customers
Net Price
the price after the trade discount has been deducted from the list price
Periodic Inventory
a merchandise inventory evaluated at the end of a fiscal period
Physical Inventory
when a periodic inventory is conducted by counting, weighing, or measuring items of merchandise on hand
Perpetual Inventory
an inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise
Purchase Invoice
an invoice used as a source document for recording a purchase on account transaction
Purchase on Account
a transaction in which the items purchased are to be paid for later
Purchase order
a form requesting that a vendor sell merchandise to a business
Purchases Discount
when a company that has purchased merchandise on account takes a cash discount
Purchases Journal
a special journal used to record only purchases of merchandise on account
Requisiition
a form requesting the purchase of merchandise
Schedule of Accounts Payable
a listing of vendor accounts, account balances, and the total amount due to all vendors
Special Amount Column
a journal amount column headed with an account title
Special Journal
a journal used to record only one kind of transaction
Terms of Sale
an agreement between a buyer and a seller about payment for merchandise
Trade Discount
a reduction in the list price granted to a merchandising business
