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141 Cards in this Set
- Front
- Back
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Goods that a business purchases to sell |
Merchandise |
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A business that purchases and sells goods |
Merchandising business |
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A merchandising business that sells to those who use or consume the goods |
Retail merchandising business |
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A business that buys and resells merchandise to retail merchandising businesses |
Wholesale merchandising business |
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An organization with the legal rights of a person and which many persons may own |
Corporation |
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Each unit of ownership in a corporation |
Share of stock |
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Total shares of ownership in a corporation |
Capital stock |
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An owner of one or more shares of a corporation |
Stockholder |
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A journal used to record only one kind of transaction |
Special journal |
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The price a business pays for goods it purchases to sell |
Cost of merchandise |
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The amount added to the cost of merchandise to establish the selling prics |
Markup |
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A business from which merchandise is purchased or supplies or other assets are bought |
Vendor |
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A transaction in which the merchandise purchases is to be paid for later |
Purchase on account |
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A special journal used to record only purchases of merchandise on account |
Purchases journal |
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A journal amount column headed with an account title |
Special amount column |
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An invoice used as a source document for recording a purchase on account transaction |
Purchase invoice |
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An agreement between a buyer and a seller about payment for merchandise |
Terms of sale |
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A special journal used to record only cash payment transactions |
Cash payments journal |
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A deduction that a vendor allows on the invoice amount to encourage prompt payment |
Cash discount |
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A cash discount on purchases taken by a customer |
Purchases discount |
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A journal amount column that is not headed with an account title |
General amount column |
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The retail price listed in a catalog or on an Internet site |
List price |
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A reduction in the list price granted to customers |
Trade discount |
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An account that reduces a related account on a financial statement |
Contra account |
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A petty cash on hand amount that is less than a recorded amount |
Cash short |
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A petty cash on hand amount that is more than a recorded amount |
Cash over |
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Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable |
Purchases return |
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Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's accounts payable |
Purchases allowance |
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A form prepared by the customer showing the price deduction taken by the customer for returns and allowances |
Debit memorandum |
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A person or business to whom merchandise of services are sold |
Customer |
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A tax on a sale of merchandise or services |
Sales tax |
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A special journal used to record only sales of merchandise on account |
Sales journal |
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A sale in which cash is received for the total amount of the sale at the time of the transaction |
Cash sale |
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A sale in which a credit card is used for the total amount of the sale at the time of the transaction |
Credit card sale |
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A computer used to collect, store, and report all the information of a sales transaction |
Point-of-sale (POS) terminal |
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The report that summarizes the cash and credit card sales of a point-of-sale terminal |
Terminal summary |
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A report of credit card sales produced by a point-of-sale terminal |
Batch report |
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The process of preparing a batch report of credit card sales from a point-of-sale terminal |
Batching out |
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A special journal used to record only cash receipt transactions |
Cash receipts journal |
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A cash discount on sales taken by a customer |
Sales discount |
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Credit allowed a customer for the sales price of returned merchandise, resulting In a decrease in the vendor's accounts receivable |
Sales return |
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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 |
Sales allowance |
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A form prepared by the vendor showing the amount deducted for returns and allowances |
Credit memorandum |
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A ledger that is summarized Ina single general ledger account |
Subsidiary ledger |
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A ledger that is summarized Ina single general ledger account |
Subsidiary ledger |
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A subsidiary ledger containing only accounts for vendors from whom merchandise or other items are purchased on account |
Accounts payable ledger |
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A ledger that is summarized Ina single general ledger account |
Subsidiary ledger |
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A subsidiary ledger containing only accounts for vendors from whom merchandise or other items are purchased on account |
Accounts payable ledger |
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A subsidiary ledger containing only accounts for charge customers |
Accounts receivable ledger |
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An account in a general ledger that summarizes all accounts in a subsidiary ledger |
Controlling account |
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An account in a general ledger that summarizes all accounts in a subsidiary ledger |
Controlling account |
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A listing of vendor accounts, account balances, and total amount due all vendors |
Schedule of accounts payable |
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A listing of customer accounts, account balances, and total amount due from all customers |
Schedule of accounts receivable |
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The money paid for employee services |
Salary |
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The money paid for employee services |
Salary |
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The period covered by a salary payment |
Pay period |
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The money paid for employee services |
Salary |
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The period covered by a salary payment |
Pay period |
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The total amount earned by all employees for a pay period |
Payroll |
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The total pay due for a pay period before deductions |
Total earnings |
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Taxes based on the payroll of a business |
Payroll taxes |
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A deduction from total earnings for each person legally supported by a taxpayer, including the employee, |
Withholding allowance |
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A deduction from total earnings for each person legally supported by a taxpayer, including the employee, |
Withholding allowance |
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A federal tax paid for old-age, survivors, and disability insurance |
Social security tax |
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A deduction from total earnings for each person legally supported by a taxpayer, including the employee, |
Withholding allowance |
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A federal tax paid for old-age, survivors, and disability insurance |
Social security tax |
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A federal tax paid for hospital insurance |
Medicare tax |
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A deduction from total earnings for each person legally supported by a taxpayer, including the employee, |
Withholding allowance |
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A federal tax paid for old-age, survivors, and disability insurance |
Social security tax |
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A federal tax paid for hospital insurance |
Medicare tax |
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The maximum amount of earnings on which a tax is calculated |
Tax base |
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A business firm used to record payroll information |
Payroll register |
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A business firm used to record payroll information |
Payroll register |
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The total earnings paid to an employee after payroll taxes and other deductions |
Net pay |
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A business firm used to record payroll information |
Payroll register |
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The total earnings paid to an employee after payroll taxes and other deductions |
Net pay |
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A business form used to record details affecting payments made to an employee |
Employee earnings record |
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A business firm used to record payroll information |
Payroll register |
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The total earnings paid to an employee after payroll taxes and other deductions |
Net pay |
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A business form used to record details affecting payments made to an employee |
Employee earnings record |
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A federal tax used for state and federal administrative expenses of the unemployment program |
Federal unemployment tax |
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A business firm used to record payroll information |
Payroll register |
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The total earnings paid to an employee after payroll taxes and other deductions |
Net pay |
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A business form used to record details affecting payments made to an employee |
Employee earnings record |
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A federal tax used for state and federal administrative expenses of the unemployment program |
Federal unemployment tax |
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A state tax used to pay benefits to unemployed workers |
State unemployment tax |
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The 12-month period that ends on June 30th of the prior year |
Lookback period |
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An amount earned by a corporation and not yet distributed to stockholders |
Retained earnings |
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Assets that will be used for a number of years in the operation of a business |
Plant assets |
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The portion of a plant asset's cost that is transferred to an expense account in each fiscal period during a plant asset's useful life |
Depreciation expense |
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The amount an owner expects to receive when a plant asset is removed from use |
Estimated salvage value |
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Charging an equal amount of depreciation expense for a plant asset in each year of useful life |
Straight-line method of depreciation |
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The total amount of depreciation expense that has been recorded since the purchase of a plant asset |
Accumulated depreciation |
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The original cost of a plant asset minus accumulated depreciation |
Book value of a plant asset |
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Total sales less sales discount and sales returns and allowances |
Net sales |
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The original price of all merchandise sold during a fiscal period |
Cost of merchandise sold |
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The revenue remaining after cost of merchandise sold has been deducted |
Gross profit on sales |
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A comparison between two items of financial information |
Financial ratio |
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Earnings distributed to stockholders |
Dividends |
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The amount of net income after federal income tax belonging to a single share of stock |
Earnings per share |
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The relationship between the market value per share and earnings per share of a stock |
Price-earnings ratio |
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A financial statement that shows changes in a corporation's ownership for a fiscal period |
Statement of stockholder's equity |
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A value assigned to a share of stock and printed on the stock certificate |
Par value |
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Liabilities due within a short time, usually within a year |
Current liabilities |
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Liabilities owed for more than a year |
Long-term liabilities |
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A report prepared to give details about an item on a principal financial statement |
Supporting schedule |
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A group of persons elected by the stockholders to manage a corporation |
Board of directors |
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Action by a board of directors to distribute corporate earnings to stockholders |
Declaring a dividend |
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The amount of goods on hand for sale to customers |
Merchandise inventory |
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Accounts receivable that cannot be collected |
Un collectible accounts |
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Crediting the estimated value of uncollectible accounts to a contra account |
Allowance method of recording losses from uncollectible accounts |
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The difference between an asset's account balance and its related contra account balance |
Book value |
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The difference between the balance of accounts receivable and its related contra account, allowance for uncollectible accounts |
Book value of accounts receivable |
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Cash and other assets expected to be exchanged for cash or consumed within a year |
Current assets |
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An amount earned by a corporation and not yet distributed to stockholders |
Retained earnings |
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Assets that will be used for a number of years in the operation of a business |
Plant assets |
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The portion of a plant asset's cost that is transferred to an expense account in each fiscal period during a plant asset's useful life |
Depreciation expense |
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The amount an owner expects to receive when a plant asset is removed from use |
Estimated salvage value |
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Charging an equal amount of depreciation expense for a plant asset in each year of useful life |
Straight-line method of depreciation |
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The total amount of depreciation expense that has been recorded since the purchase of a plant asset |
Accumulated depreciation |
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The original cost of a plant asset minus accumulated depreciation |
Book value of a plant asset |
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Total sales less sales discount and sales returns and allowances |
Net sales |
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The original price of all merchandise sold during a fiscal period |
Cost of merchandise sold |
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The revenue remaining after cost of merchandise sold has been deducted |
Gross profit on sales |
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A comparison between two items of financial information |
Financial ratio |
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Earnings distributed to stockholders |
Dividends |
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The amount of net income after federal income tax belonging to a single share of stock |
Earnings per share |
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The relationship between the market value per share and earnings per share of a stock |
Price-earnings ratio |
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A financial statement that shows changes in a corporation's ownership for a fiscal period |
Statement of stockholder's equity |
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A value assigned to a share of stock and printed on the stock certificate |
Par value |
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Liabilities due within a short time, usually within a year |
Current liabilities |
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Liabilities owed for more than a year |
Long-term liabilities |
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A report prepared to give details about an item on a principal financial statement |
Supporting schedule |
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A group of persons elected by the stockholders to manage a corporation |
Board of directors |
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Action by a board of directors to distribute corporate earnings to stockholders |
Declaring a dividend |
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The amount of goods on hand for sale to customers |
Merchandise inventory |
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Accounts receivable that cannot be collected |
Un collectible accounts |
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Crediting the estimated value of uncollectible accounts to a contra account |
Allowance method of recording losses from uncollectible accounts |
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The difference between an asset's account balance and its related contra account balance |
Book value |
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The difference between the balance of accounts receivable and its related contra account, allowance for uncollectible accounts |
Book value of accounts receivable |
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Cash and other assets expected to be exchanged for cash or consumed within a year |
Current assets |
