| A | B |
|---|
| Partnership | a business in which two ormore persons combine their assets and skills |
| Entity Concept | financial records of the business are kept separate from teh personal records |
| Merchandising Business | a business that purchases and sells goods |
| Merchandise | goods that a merchandising business purchases to sell |
| Going Concern Concept | the business expects to make money and continue |
| Expanded Combination Journal | used to record all transactions in a multi-column journal |
| Cost of Merchandise | the price of merchandise that is to be sold |
| Markup | amount added to the cost of mer. to establish a selling price |
| Vendor | a business from which the merchandise is purchased or supplies are bought |
| Historicl Cost Concept (GAAP) | items bought are recorded and reported at the price agreed upons at the time of the transaction |
| Objectivity Concept (GAAP) | proof that a transaction took place |
| Purchase on Account | merchandise purchased is to be paid for later |
| Invoice | a form describing the goods sold, the quantity, and the price |
| Terms of Sale | an agreement between a buyer and a seller about payment for merchandise |
| Correcting Entry | a journal entry made to correct an error in the ledger |
