Chapter 9

Question 0

Merchandising business

Answer 0

A business that purchases and sells goods

Question 1

Merchandise

Answer 1

Goods that a business purchases to sell

Question 2

Retail merchandising business

Answer 2

A merchandising business that sells to those who use or consume the goods

Question 3

Wholesale merchandising business

Answer 3

A business that buys and resells merchandise to retail merchandising business

Question 4

Corporation

Answer 4

An organization with legal rights of a person and which persons may own

Question 5

Share of a stock

Answer 5

Each unit of ownership in a corporation

Question 6

Capital stock

Answer 6

Total shares if ownership in a corporation

Question 7

Stockholder

Answer 7

An owner if one or more shares of a corporation

Question 8

Special journal

Answer 8

A journal used to record only one type if transaction

Question 9

Cost of merchandise

Answer 9

The price a business pays for goods it purchases to sell

Question 10

Markup

Answer 10

The amount added to the cost of merchandise to establish the selling price

Question 11

Vendor

Answer 11

A business from which merchandise is purchased or supplies it other assets are bought

Question 12

Purchase on account

Answer 12

A transaction in which the merchandise purchased to be paid later

Question 13

Purchases journal

Answer 13

A special journal used to record only merchandising on account

Question 14

Special amount column

Answer 14

A journal amount column headed with an account title

Question 15

Purchase invoice

Answer 15

An invoice used as a source document for recording a purchase in account transaction

Question 16

Terms of sale

Answer 16

A agreement between a buyer and a seller about a payment for merchandise

Question 17

Cash payments journal

Answer 17

A sexual journal used to record only cash payment transactions

Question 18

Cash discount

Answer 18

A deduction that a vendor allows on te invoice of amount to encourage prompt payment

Question 19

Purchases discount

Answer 19

A cash discount on purchases taken by a customer

Question 20

General amount column

Answer 20

A journal amount column that is not headed with an account title

Question 21

List price

Answer 21

The retail price listed in a catalog or on an internet site

Question 22

Trade discount

Answer 22

A reduction in the list price granted to customers

Question 23

Contra account

Answer 23

An account that reduces a related account account on a financial statement

Question 24

Cash short

Answer 24

A petty cash on hand amount that is less that a recorded amount

Question 25

Cash over

Answer 25

A petty cash on hand amount that is more than a recorded amount

Question 26

Purchases returned

Answer 26

Credit allowed for the purchase price if returned merchandise, resulting in a decrease in the customer’s account payable

Question 27

Purchases allowance

Answer 27

Credit allowed for part of the purchasing price of merchandise that is not returned, resulting in a decrease in the customer’s account payable

Question 28

Debit memorandum

Answer 28

A form prepared by the customer for returns and allowances