What is a Cash Discount?

Deduction of cost if paid off at a certain time

What is a Controlling Account?

Account that serves as a control on the account balances

The items bought to resell to customers/consumers

An account whose balance is decreased to its related account

What is a Cash Receipt?

Cash received by a business in a single transaction

A business that sells to customers/consumers

Account Receivable Subsidiary Ledger is...?

A separate ledger for a separate account for each customer

What is a Credit Memorandum?

A form that lists the details of a sales return or allowance

A business that sells to retailers

A revenue account to record the amount of merchandise sold

where business receives full payment at the time of purchase

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3.02 Accounting

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A review of unit 3.02 for Accounting 1 Honors

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Questions 13

Answers

1
Sales Discount?
Also known as a Cash Discount
When a business receives full payment at the time of sale
2
What is a Cash Discount?
Deduction of cost if paid off at a certain time
Cash received by a business in a single transaction
3
What is a Controlling Account?
Account that serves as a control on the account balances
The sale of merchandise that will be paid at a later date
Terms that state the time allowed for payment on account
A form that lists the details of the sale
4
What is Merchandise?
A revenue account to record the amount of merchandise sold
The items bought to resell to customers/consumers
The items a business has in stock
5
Contra Account?
A price reduction granted for damaged goods kept
Form that lists the details of a sales return
An account whose balance is decreased to its related account
Any merchandise returned for credit or a cash refund
6
What is a Cash Receipt?
Cash received by a business in a single transaction
Full payment for merchandise sold at the time of sale
7
What is a Retailer?
A business that sells to retailers
A business that sells to customers/consumers
8
Account Receivable Subsidiary Ledger is...?
A separate ledger for a separate account for each customer
A separate account for separate sales allowances
An account created to keep track of sales for the ledger
An individual account for cash sales placed within a ledger
9
What is a Credit Memorandum?
A form that lists the details of a sales return or allowance
Form to notify suppliers of a return or request an allowance
10
Wholesaler?
A business that sells to customers/consumers
A business that sells to retailers
11
Credit terms define...?
The amount needed for full payment
The time allowed for payment
The credit earned
12
What are Sales?
A customer whom a sale on account is made
Any merchandise returned for cash or credit refund
A revenue account to record the amount of merchandise sold
13
What is a Cash Sale?
where business receives full payment at the time of purchase
cash received by a business in a single transaction.

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