9-2 Accounting terms

Purchase Order

A form requesting that a vendor sell merchandise to a business

Requisition

A form requesting the purchase of merchandise

Special Amount Column

A journal amount column headed with an account title

Special Journal

A journal used to record only one kind of transaction.

Inventory

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

Purchases Journal

A special journal use to record only purchases of merchandise on account

Purchase on Account

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

Terms of Sale

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

Perpetual Inventory

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

Purchase Invoice

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

Cost of Merchandise

The amount a business pays for goods it purchases to sell

Due Date

The date by which an invoice must be paid

Merchandise Inventory

The goods a business has on hand for sale to customers

Physical Inventory

When a periodic inventory is conducted by counting, weighing, or measuring items of merchandise on hand