Unit 4: Basic Accounting Cycle – Merchandising Business
1. Accounts payable ledger – a subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account
2. Accounts receivable ledger – a subsidiary ledger containing only accounts for charge customers
3. Batch report – a report which gives performance information over a specific date range
4. Batching out – closing out all the transactions on the system that were processed for a particular day
5. Capital stock – total amount of a firm's capital, represented by the value of its issued common and preferred stock (ordinary and preference
shares)
6. Corporation – business that meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct
from its owners
7. Cash discount – incentive offered by a seller to a buyer for settling the invoice immediately on delivery or in a period substantially shorter
than the conventional period in that industry or market.
8. Cash receipt journal – journal in which all cash receipts and payments (including bank deposits and withdrawals) are recorded first, in
chronological order, for posting to general ledger
9. Cash over – a petty cash on hand amount that is more than a recorded amount.
10. Cash sale – a sale in which cash is received for the total amount of the sale at the time of the transaction
11. Cash short – a petty cash on hand amount that is less than a recorded amount.
12. Contra account – an account that reduces a related account on a financial statement
13. Controlling account – an account in a general ledger that summarizes all accounts in a subsidiary ledger
14. Cost of merchandise – the price a business pays for goods it purchases to sell
15. Cost of merchandise sold (goods) – the total original price of all merchandise sold during a fiscal period
16. Credit card sale – a sale in which a credit card is used for the total amount of the sale at the time of the transaction
17. Credit memorandum -form or letter sent by a seller to a buyer, stating that a certain amount has been credited to the buyer's account.
18. Current assets – any asset expected to last or be in use for less than one year
19. Customer – a person or business to which merchandise or services are sold
20. Debit memorandum – form or letter issued by a seller to advise the amount owed by the buyer
21. Distribution-of-net-income statement – a partnership financial statement showing net income or loss distribution to partners
22. General amount column – a journal amount column that is not headed with an account title.
23. Gross profit on sales – the revenue remaining after cost of merchandise sold has been deducted
24. Historical cost concept – the actual amount paid for merchandise or other items bought is recorded
25. Inventory – the amount of goods on hand
26. List price – the retail price listed in a catalog or on an Internet site.
27. Markup – the amount added to the cost of merchandise to establish the selling price
28. Merchandise – goods that a merchandising business purchases to sell
29. Merchandise inventory – the amount of goods on hand for sale to customers
30. Owner's equity statement – a financial statement that summarizes the changes in owner's equity during a fiscal period
31. Partner – each member of a partnership
32. Plant assets – assets that will be used for a number of years in the operation of a business
33. Purchase invoice – an invoice used as a source document for recording a purchase on account transaction
34. Point-of-sale (POS) terminal – a computer used to collect, store, and report all the information of a sales transaction
35. Purchases discount – a cash discount on purchases taken by a customer.
36. Purchases return – credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable.
37. Purchases allowance – credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the
customer's accounts payable
38. Retail merchandising business – a merchandising business that sells to those who use or consume the goods
39. Retained earnings – an amount earned by a corporation and not yet distributed to stockholders
40. Sales discount – a cash discount on sales
41. Sales journal – a special journal used to record only sales of merchandise on account
42. Sales return – credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor's accounts
receivable
43. Sales allowance – credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the
vendor's accounts receivable.
44.Sales tax – a tax on a sale of merchandise or services
45. Schedule of accounts payable – a listing of vendor accounts, account balances, and total amount due all vendors
46. Schedule of accounts receivable – a listing of customer accounts, account balances, and total amount due from all customers
47. Share of stock – each unit of ownership in a corporation
48. Stockholder – an owner of one or more shares of a corporation
49. Special amount column – a journal amount column headed with an account title
50. Subsidiary ledger – a ledger that is summarized in a single general ledger account
51. Supporting schedule – a report prepared to give details about an item on a principal financial statement
52. Terms of sale – an agreement between a buyer and a seller about payment for merchandise
53. Terminal summary – the report that summarizes the cash and credit card sales of a point-of-sale terminal
54. Trade discount – a reduction in the list price granted to customers.
55. Vendor – a business from which merchandise is purchased or supplies or other assets are bought
56. Wholesale merchandising business – a business that buys and resells merchandise to retail merchandising businesses
1. Accounts payable ledger – a subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account
2. Accounts receivable ledger – a subsidiary ledger containing only accounts for charge customers
3. Batch report – a report which gives performance information over a specific date range
4. Batching out – closing out all the transactions on the system that were processed for a particular day
5. Capital stock – total amount of a firm's capital, represented by the value of its issued common and preferred stock (ordinary and preference
shares)
6. Corporation – business that meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct
from its owners
7. Cash discount – incentive offered by a seller to a buyer for settling the invoice immediately on delivery or in a period substantially shorter
than the conventional period in that industry or market.
8. Cash receipt journal – journal in which all cash receipts and payments (including bank deposits and withdrawals) are recorded first, in
chronological order, for posting to general ledger
9. Cash over – a petty cash on hand amount that is more than a recorded amount.
10. Cash sale – a sale in which cash is received for the total amount of the sale at the time of the transaction
11. Cash short – a petty cash on hand amount that is less than a recorded amount.
12. Contra account – an account that reduces a related account on a financial statement
13. Controlling account – an account in a general ledger that summarizes all accounts in a subsidiary ledger
14. Cost of merchandise – the price a business pays for goods it purchases to sell
15. Cost of merchandise sold (goods) – the total original price of all merchandise sold during a fiscal period
16. Credit card sale – a sale in which a credit card is used for the total amount of the sale at the time of the transaction
17. Credit memorandum -form or letter sent by a seller to a buyer, stating that a certain amount has been credited to the buyer's account.
18. Current assets – any asset expected to last or be in use for less than one year
19. Customer – a person or business to which merchandise or services are sold
20. Debit memorandum – form or letter issued by a seller to advise the amount owed by the buyer
21. Distribution-of-net-income statement – a partnership financial statement showing net income or loss distribution to partners
22. General amount column – a journal amount column that is not headed with an account title.
23. Gross profit on sales – the revenue remaining after cost of merchandise sold has been deducted
24. Historical cost concept – the actual amount paid for merchandise or other items bought is recorded
25. Inventory – the amount of goods on hand
26. List price – the retail price listed in a catalog or on an Internet site.
27. Markup – the amount added to the cost of merchandise to establish the selling price
28. Merchandise – goods that a merchandising business purchases to sell
29. Merchandise inventory – the amount of goods on hand for sale to customers
30. Owner's equity statement – a financial statement that summarizes the changes in owner's equity during a fiscal period
31. Partner – each member of a partnership
32. Plant assets – assets that will be used for a number of years in the operation of a business
33. Purchase invoice – an invoice used as a source document for recording a purchase on account transaction
34. Point-of-sale (POS) terminal – a computer used to collect, store, and report all the information of a sales transaction
35. Purchases discount – a cash discount on purchases taken by a customer.
36. Purchases return – credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable.
37. Purchases allowance – credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the
customer's accounts payable
38. Retail merchandising business – a merchandising business that sells to those who use or consume the goods
39. Retained earnings – an amount earned by a corporation and not yet distributed to stockholders
40. Sales discount – a cash discount on sales
41. Sales journal – a special journal used to record only sales of merchandise on account
42. Sales return – credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor's accounts
receivable
43. Sales allowance – credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the
vendor's accounts receivable.
44.Sales tax – a tax on a sale of merchandise or services
45. Schedule of accounts payable – a listing of vendor accounts, account balances, and total amount due all vendors
46. Schedule of accounts receivable – a listing of customer accounts, account balances, and total amount due from all customers
47. Share of stock – each unit of ownership in a corporation
48. Stockholder – an owner of one or more shares of a corporation
49. Special amount column – a journal amount column headed with an account title
50. Subsidiary ledger – a ledger that is summarized in a single general ledger account
51. Supporting schedule – a report prepared to give details about an item on a principal financial statement
52. Terms of sale – an agreement between a buyer and a seller about payment for merchandise
53. Terminal summary – the report that summarizes the cash and credit card sales of a point-of-sale terminal
54. Trade discount – a reduction in the list price granted to customers.
55. Vendor – a business from which merchandise is purchased or supplies or other assets are bought
56. Wholesale merchandising business – a business that buys and resells merchandise to retail merchandising businesses