Accounting Chp 9 Vocab

25. The maximum outstanding balance allowed to a customer by a vendor. (p. 267)

credit limit

21. A journal amount column that is not headed with an account title. (p. 260)

general amount column

17. The retail price listed in a catalog or on an Internet site. (p. 260)

list price

4. A merchandise inventory evaluated at the end of a fiscal period. (p. 249)

periodic inventory

3. An inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise. (p. 249)

perpetual inventory

8. A form requesting that a vendor sell merchandise to a business. (p. 251)

purchase order

7. A form requesting the purchase of merchandise. (p. 251)

requisition

3. A merchandising business that sells to those who use or consume the goods. (p. 244)

retail merchandising business

26. A listing of vendor accounts, account balances, and the total amount due to all vendors. (p. 272)

schedule of accounts payable

7. Each unit of ownership in a corporation. (p. 244)

share of stock

9. A journal used to record only one kind of transaction. (p. 251)

special journal

8. The owner of one or more shares of stock. (p. 244)

stockholder

14. An agreement between a buyer and a seller about payment for merchandise. (p. 252)

terms of sale

18. A reduction in the list price granted to a merchandising business. (p. 260)

trade discount

4. A business that buys and resells merchandise primarily to other merchandising businesses. (p. 244)

wholesale merchandising business

10. A legal document that identifies basic characteristics of a corporation. (p. 244)

articles of incorporation

20. A deduction that a vendor allows on an invoice amount to encourage prompt payment. (p. 260)

cash discount

24. An account that reduces a related account on a financial statement. (p. 263)

contra account

15. An account in a general ledger that summarizes all accounts in a subsidiary ledger. (p. 246)

controlling account

5. An organization with the legal rights of a person which many persons or other corporations may own. (p. 244)

corporation