Acct 1 Section 9-1 – Flashcards
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Merchandise
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Goods that a business purchases to sell.
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Merchandising business
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A business that purchases and 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 a merchandising business.
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Corporation
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An organization with legal the rights of a person and which many persons may own.
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Share of stock
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Unit of ownership in a coroporation.
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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 merchadise on account.
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Special amount column
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A journal amount column headed with 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
