| A | B |
|---|
| merchandise | goods that a business purchases to sell |
| merchandising business | a business that sells goods |
| retail merchandising business | a business that sells to those who consume the goods |
| wholesale merchandising business | a business that sells to retailers |
| special journal | a journal used only to record a special kind of transaction |
| corporation | an organization with the legal rights of a person |
| share of stock | a unit of ownership in a business |
| capital stock | total shares of ownership in a corporation |
| stockholder | an owner of one or more shares of a corporation |
| cost of merchandise | the price a business pays for goods it purchases to sell |
| markup | the difference between the cost and the selling price |
| vendor | a business where merchandise is purchased |
| purchase on account | a transaction where the merchandise is to be paid later |
| purchases journal | a special journal used only to record purchases of merchandise on account |
| special amount column | a journal amount column headed with a specific name |
| purchase invoice | a source document used for recording a purchase on account |
| cash payments journal | a special journal used to record only cash payment transactions |
| cash discount | a deduction that a vendor allows on the invoice to encourage prompt payment |
| purchases discount | a cash discount taken on purchases by a customer |
| general amount column | a journal amount column that does not have a specific heading |
| list price | the suggested retail price |
| trade discount | a reduction in the price granted to customers |
| contra account | an account that reduces a related account on a financial statement |
| cash short | petty cash on hand that is less than the recorded amount |
| cash over | petty cash on hand that is more than the recorded amount |
| purchases return | credit allowed for the purchase price of returned merchandise |
| purchases allowance | credit allowed for some merchandise that is not returned |
| debit memorandum | a form prepared by the customer showing the price deduction taken by the customer for returns and allowances |
