Unit 9-2

Question 1

inventory

Answer 1

A list of assets, usually containing the value of individual items.

Question 2

merchandise inventory

Answer 2

The goods a business has on hand for sale to customers.

Question 3

perpetual inventory

Answer 3

An inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise.

Question 4

periodic inventory

Answer 4

A merchandise inventory evaluated at the end of a fiscal period.

Question 5

physical inventory

Answer 5

A periodic inventory conducted by counting, weighing, or measuring items of merchandise on hand.

Question 6

cost of merchandise

Answer 6

The amount a business pays for goods it purchases to sell.

Question 7

requisition

Answer 7

A form requesting the purchase of merchandise.

Question 8

purchase order

Answer 8

A form requesting that a vendor sell merchandise to a business.

Question 9

special journal

Answer 9

A journal used to record only one kind of transaction.

Question 10

purchase on account

Answer 10

A transaction in which the items purchased are to be paid for later.

Question 11

purchases journal

Answer 11

A special journal used to record only purchases of merchandise on account.

Question 12

special amount column

Answer 12

A journal amount column headed with an account title.

Question 13

purchase invoice

Answer 13

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

Question 14

terms of sale

Answer 14

An agreement between a buyer and a seller about payment for merchandise.

Question 15

due date

Answer 15

The date by which an invoice must be paid.