| A | B |
|---|
| corporation | An organization with the legal rights of a person and which many person may own. |
| purchases journal | A special journal used to record only purchases of merchandise on account is called a ____. |
| 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 pruchases to sell. |
| markup | The amount added to the cost of merchandise to establish the selling price. |
| vendor | A business from which merchandise is purchased or supplies or other assets are bought. |
| purchase on account | A transaction in which the mrerchandise purchased is to be paid for later. |
| 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. |
| cash payments journal | A special journal used to record only cash payment transactions. |
| cash discount | A deduction that a vendor allows on the invoice amount to encourage prompt payment. |
| purchase discount | A cash discount on purchases taken by a customer. |
| list price | The retail price listed in a catalog or on an Internet site. |
| trade discount | A reduction in th list price granted to customers. |
| contra account | An account that rduces a related account on a financial statement. |
| purchases return | Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable. |
| 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. |
| debit memorandum | A form prepared by the customer showing the price deduction taken by the customers for returns and allowances. |
| special journal | A journal used to record only one kind of transaction is called a ___. |
| share of stock | Each unit of ownership in a corporation. |
