Accounting - Ch. 9 review

The periodic inventory method does not require records of the quantity and cost of individual goods.

The retail price listed in a catalog or on an internet site.

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

Each unit of ownership in a corporation.

Since contra accounts are offsets to their related accounts, contra account normal balances are

A deduction that a vendor allows on an invoice amount to encourage prompt payment.

An account that reduces a related account on a financial statement.

The maximum outstanding balance allowed to a customer by a vendor.

A business that buys and resells merchandise primarily to other merchandising businesses.

A corporation exists independently of its owners.

The Purchases account is classified as a(n)

A purchase of merchandise for cash would be posted

A journal used to record only one kind of transaction.

The terms 1/10, n/30 means that 10% of the invoice amount may be deducted if paid within 30 days.

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

The owner of one or more shares of stock.

A periodic inventory conducted by counting, weighing, or measuring items of merchandise on hand is called a(n)

A legal document that identifies basic characteristics of a corporation.

The total of accounts in the accounts payable subsidiary ledger = the balance of the controlling account, Accts Payable

The contra account Purchases Discount has a normal debit balance.

The total of a schedule of accounts payable less purchases discounts taken will equal the total of Accounts Payable.

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

The petty cash account Cash Short and Over is a temporary account.

To replenish $300 petty cash, receipts totaling $224 & cash $74 are in the box. One part of the journal entry is

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

An inventory method known for keeping a continuous record of increases, decreases, and balance on hand for each item.

A corporation can own property, incur liabilities, and enter into contracts in its own name.

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

A form requesting the purchase of merchandise.

Supplies bought for use in a business are recorded in the

Merch with a list price of $1,500 is purchased on acct for $900 on 8/1. Terms are 2/10, n/30. Payment is made on 8/17

An employee working with an account can trace a transaction back to the correct journal by using information in the

A merchandising business places Purchases in the Operating Expenses section of the income statement.

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

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

A reduction in the list price granted to a merchandising business.

A transaction to record merchandise purchased with a trade discount would include a debit to Merchandise Discount

A listing of vendor accounts, account balances, and the total amount due to all vendors.