Accounting (chapter 9) – Flashcards
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merchandise
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Goods that a merchandising business purchases to sell
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merchandising business
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A business that purchases an sells goods
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retail merchandising business
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A merchandising business that sells to those who use or consume the goods.
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wholesale merchandising business
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A business that buys and resells merchandise to retail merchandising business
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corporation
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An organization with the legal rights of a person and which may be owned by many persons.
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share of stock
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Each unit of ownership in a corporation.
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capital stock
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Total shares of ownership in a corporation.
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stockholder
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An owner of one or more shares of a corporation.
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special journal
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A journal used to record only one kind of transaction.
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cost of merchandise
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The price a business pays for goods it purchases to sell.
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markup
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The amount added to the cost of merchandise to establish the selling price.
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vendor
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A business from which merchandise is purchased or supplies or other assets are bought.
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purchase on account
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A transaction in which the merchandise purchased is to be paid for later.
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purchases journal
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A special journal used to record only purchases of merchandise on account.
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special amount column
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A journal amount column headed with an account title.
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purchase invoice
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An invoice used as a source document for recording a purchase on account transaction.
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terms of sale
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An agreement between a buyer and a seller about payment for merchandise.
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cash payments journal
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A special journal used to record only cash payment transactions.
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cash discount
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a deduction from the invoice amount, allowed by a vendor to encourage early payments.
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purchases discount
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A cash discount on purchases taken by a customer.
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general amount column
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A journal amount column that is not headed with an account title
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list price
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The retail price listed in a catalog or on an Internet site.
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trade discount
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A reduction in the list price granted to a customer.
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contra account
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An account that reduces a related account on a financial statement.
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cash short
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A petty cash on hand amount that is less than a recorded amount.
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cash over
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A petty cash on hand amount that is more than a recorded amount
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purchases return
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Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payble.
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purchases allowance
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Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's accounts payable.
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debit memorandum
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A form prepared by the customer showing the price deduction taken by the customer for returns and allowances.
