9-1 Accounting terms

Vendor

A business from which merchandise, supplies, or other assets are purchased

Wholesale Merchandising Business

A business that buys and sells merchandise primarily to other merchandising businesses

Merchandising Business

A business that purchases and resells goods

Subsidiary Ledger

A ledger that is summarized in a single general ledger account

Articles of Incorporation

A legal document that identifies basic characteristics of a corporation

Charter

A legal right for a business to conduct operations as a business

Retail Merchandising Business

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

Controlling Account

An account in a general ledger that summarizes all accounts in a subsidiary ledger.

Corporation

An organization with the legal rights of a person which many persons or other corporations may own.

Share of Stock

Each unit of ownership in a corporation

Merchandise

Goods that a business purchases to sell

capital

The assets or other financial resources available to a business

Stockholder

The owner of one or more shares of stock

Accounts Payable Ledger

The subsidiary ledger containing vendor accounts

Capital Stock

The total shares of ownership in a corporation