Accounting Terms Unit 10

Terms of sale

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

Purchase invoice

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

Partner

Each member of a partnership

Retail merchandising business

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

Cash payments journal

A special journal used to record only cash payment transactions

Purchases journal

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

Vendor

A business from which merchandise is purchased or supplies or other assets are bought

Partnership

A business in which two or more persons combine their assets and skills

Wholesale merchandising business

A business that buys and resells merchandise to retail merchandising businesses

Merchandising business

A business that purchases and sells goods

Special journal

A journal amount column headed with an account title

general amount column

A journal amount column that is not headed with an account title

Special journal

A journal used to record only one kind of transaction

Markup

The amount added to the cost of merchandise to establish the selling price

Cost of merchandising

The price a business pays for goods it purchases to sell

Merchandise

goods that a merchandising business purchases to sell