Accounting I Study Guide Chapter 9 Questions & Answers.
Articles of Incorporation - ✔✔✔ A legal document that identifies basic characteristics of a
corporation
Charter - ✔✔✔ The legal rights for a business to conduct operations as a corporation
Vendor - ✔✔✔ A business from which merchandise, supplies, or other assets are
purchased
Subsidiary Ledger - ✔✔✔ A ledger that is summarized in a single general ledger account
Accounts Payable Ledger - ✔✔✔ A subsidiary ledger containing vendor accounts
Controlling Account - ✔✔✔ An account in a general ledger that summarizes all accounts in
a subsidiary ledger
Inventory - ✔✔✔ A list of assets, usually containing the value of individual items
Merchandise Inventory - ✔✔✔ The goods a business has on hand for sale to customers
Perpetual Inventory - ✔✔✔ An inventory determined by keeping a continuous record of
increases, decreases, and the balance on hand of each item of merchandise
Merchandise - ✔✔✔ Goods that a business purchases in order to sell
Merchandising Business - ✔✔✔ A business that purchases and resells goods
Retail Merchandising Business - ✔✔✔ A merchandising business that sells to those who
use or consume goods
Wholesale Merchandising Business - ✔✔✔ A business that buys and resells merchandise
primarily to other merchandising businesses
Corporation - ✔✔✔ An organization with the legal rights of a person which many persons
or other corporations may own
Capital - ✔✔✔ The assets or financial resources available to a business
Share of Stock - ✔✔✔ Each unit of ownership in a coperation
Stockholder - ✔✔✔ The owner of one or more share of stock
, Capital Stock - ✔✔✔ The total shares of ownership in a corporation
Periodic Inventory - ✔✔✔ A merchandise inventory evaluated at the end of a fiscal period
Physical Inventory - ✔✔✔ When a periodic inventory is conducted by counting, weighing,
or measuring items of merchandise on hand
Cost of Merchandise - ✔✔✔ The amount a business pays for goods it purchases to sell
Requsition - ✔✔✔ A form requesting the purchase of merchandise
Purchase Order - ✔✔✔ A form requesting that a vendor sell merchandise to a business
Special Journal - ✔✔✔ A journal used to record only one kind of transaction
Purchase on Account - ✔✔✔ A transaction in which the items purchased are to be paid for
later
Purchases Journal - ✔✔✔ A special journal used to record only purchases of merchandise
on account
Special Amount Column - ✔✔✔ A journal amount column headed with an account title
Purchase Invoice - ✔✔✔ An invoice used as a source document for recording a purchase
on account transaction
Terms of Sale - ✔✔✔ An agreement between a buyer and a seller about payment for
merchandise
Due Date - ✔✔✔ The date by which an invoice must be paid
Cash Payments Journal - ✔✔✔ A special journal used to record only cash payment
transactions
List Price - ✔✔✔ The retail price listed in a catalog or on an Internet site
Trade Discount - ✔✔✔ A reduction in the list price granted to a merchandising business
Net Price - ✔✔✔ The price after the trade discount has been deducted from the list price
Cash Discount - ✔✔✔ A deduction that a vendor allows on an invoice amount to
encourage prompt payment
Articles of Incorporation - ✔✔✔ A legal document that identifies basic characteristics of a
corporation
Charter - ✔✔✔ The legal rights for a business to conduct operations as a corporation
Vendor - ✔✔✔ A business from which merchandise, supplies, or other assets are
purchased
Subsidiary Ledger - ✔✔✔ A ledger that is summarized in a single general ledger account
Accounts Payable Ledger - ✔✔✔ A subsidiary ledger containing vendor accounts
Controlling Account - ✔✔✔ An account in a general ledger that summarizes all accounts in
a subsidiary ledger
Inventory - ✔✔✔ A list of assets, usually containing the value of individual items
Merchandise Inventory - ✔✔✔ The goods a business has on hand for sale to customers
Perpetual Inventory - ✔✔✔ An inventory determined by keeping a continuous record of
increases, decreases, and the balance on hand of each item of merchandise
Merchandise - ✔✔✔ Goods that a business purchases in order to sell
Merchandising Business - ✔✔✔ A business that purchases and resells goods
Retail Merchandising Business - ✔✔✔ A merchandising business that sells to those who
use or consume goods
Wholesale Merchandising Business - ✔✔✔ A business that buys and resells merchandise
primarily to other merchandising businesses
Corporation - ✔✔✔ An organization with the legal rights of a person which many persons
or other corporations may own
Capital - ✔✔✔ The assets or financial resources available to a business
Share of Stock - ✔✔✔ Each unit of ownership in a coperation
Stockholder - ✔✔✔ The owner of one or more share of stock
, Capital Stock - ✔✔✔ The total shares of ownership in a corporation
Periodic Inventory - ✔✔✔ A merchandise inventory evaluated at the end of a fiscal period
Physical Inventory - ✔✔✔ When a periodic inventory is conducted by counting, weighing,
or measuring items of merchandise on hand
Cost of Merchandise - ✔✔✔ The amount a business pays for goods it purchases to sell
Requsition - ✔✔✔ A form requesting the purchase of merchandise
Purchase Order - ✔✔✔ A form requesting that a vendor sell merchandise to a business
Special Journal - ✔✔✔ A journal used to record only one kind of transaction
Purchase on Account - ✔✔✔ A transaction in which the items purchased are to be paid for
later
Purchases Journal - ✔✔✔ A special journal used to record only purchases of merchandise
on account
Special Amount Column - ✔✔✔ A journal amount column headed with an account title
Purchase Invoice - ✔✔✔ An invoice used as a source document for recording a purchase
on account transaction
Terms of Sale - ✔✔✔ An agreement between a buyer and a seller about payment for
merchandise
Due Date - ✔✔✔ The date by which an invoice must be paid
Cash Payments Journal - ✔✔✔ A special journal used to record only cash payment
transactions
List Price - ✔✔✔ The retail price listed in a catalog or on an Internet site
Trade Discount - ✔✔✔ A reduction in the list price granted to a merchandising business
Net Price - ✔✔✔ The price after the trade discount has been deducted from the list price
Cash Discount - ✔✔✔ A deduction that a vendor allows on an invoice amount to
encourage prompt payment
