Accounting Chapter 9

The date by which an invoice must be paid.

due date

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

inventory

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

merchandise inventory

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

periodic inventory

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

perpetual inventory

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

physical inventory

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

purchase invoice

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

purchase on account

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

purchase order

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

purchases journal

A form requesting the purchase of merchandise.

requisition

A journal amount column headed with an account title.

special amount column

A journal used to record only one kind of transaction.

special journal

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

terms of sale

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

cost of merchandise