Chapter 9 class Flashcards
total shares of ownership in a corporation
capital stock
a deduction that a vendor allows on the invoice amount to encourage prompt payment; stated as a percentage deducted from invoice amount
cash discount
a petty cash on hand amount that is more than a recorded amount
cash over
a special journal used to record only cash payment transactions
cash payments journal
a petty cash on hand amount that is less than a recorded amount
cash short
an account that reduces a related account on a financial statement
contra account
an organization with the legal rights of a person and which many persons may own
corporation
the price a business pays for goods it purchases to sell
cost of merchandise
a form prepared by the customer showing the price deduction taken by the customer for returns and allowances
debit memorandum
a journal amount column that is not headed with an account title
general amount column
the retail price listed in a catalog or on an Internet site
list price
the amount added to the cost of merchandise to establish the selling price
markup
goods that a business purchases to sell
merchandise
a business that purchases and sells goods
merchandising business
an invoice used as a source document for recording a purchase on account transaction
purchase on account
credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s accounts payable
purchases return
a merchandising business that sells to those who use or consume the goods
retail merchandising business
each unit of ownership in a corporation
share of stock
a journal amount column headed with an account title
special amount column
a journal used to record only one kind of transaction
special journal
an owner of one or more shares of a corporation
stockholder
an agreement between a buyer and a seller about payment for merchandise
terms of sale
Expectation a business will remain in operation indefinitely
Accounting concept of Going Concern
Actual amount paid for merchandise or other items bought is recorded
Accounting concept of Historical Cost
Source document is prepared for recording purchase on account transaction
Accounting concept of Objective Evidence
discount taken on purchases by customer. customer pays less than the invoice amount
purchase discount
reduction in list price granted to customers; used to quote different quantities purchased without changing list price
trade discount
