| A | B |
|---|
| selling price | the amount a business receives from the sale of an item of merchandise |
| markup | the amount a business adds to the cost of merchandise to establish the selling price |
| selling price formula | cost of merchandise plus markup equals selling price |
| accounts receivable ledger | a subsidiary ledger containing all accounts for charge customers |
| sales tax | a tax on a sale of merchandise or services |
| sales journal | a special journal used to record sales of merchandise on account |
| cash sale | a sale in which the customer pays for the total amount of the sale at the time of the transaction |
| point-of-sale (POS) terminal | a specialized computer used to collect |
| terminal summary | the report that summarizes the cash and credit card sales of a point-of-sale terminal |
| batch report | a report of credit card sales produced by a point-of-sale terminal |
| batching out | the process of preparing a batch report from a point-of-sale terminal |
| cash receipts journal | a special journal used to record only cash receipt transactions |
| sales discount | a cash discount on a sale taken by the customer |
| schedule of accounts receivable | ”a listing of customer accounts |
| Objective Evidence Accounting Concept | Every transaction must have a source document. |
| sales invoice | ”an invoice recording a sale on account |
| Realization of Revenue Accounting Concept | Revenue is recorded at the time goods or services are sold. |
| UPC | Universal Product Code symbol used to identify a product for sale |
| credit card | ”a card issued by a bank |
| debit card | a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase |
| GAAP | Generally Acceptable Accounting Principles serves as a guide for reporting and interpreting accounting information which includes the accounting concepts illustrated in the accounting class |
| IASB | International Accounting Standards Board is responsible for the development and publication of International Financial Reporting Standards |
| IFRS | International Financial Reporting Standards an organization responsible for setting the GAAP financial accounting standards |
| AICPA | American Institute of Certified Public Accountants |
| proving cash | determining that the amount of cash agrees with the balance of the cash account in the accounting records |
| occupational fraud | also called internal fraud is the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the organization’s resources or assets. |
| 2/10, n/30 | Terms of sale 2% discount if paid in 10 and net amount due in 30 days |
| Accounting Equation | Assets = Liabilities + Owner's Equity |
| UPC | Universal Product Code of 12 numerical digits uniquely assigned to each trade item |
| Going Concern Accounting Concept | Financial statements are prepared with the expectation that a business will remain in operation indefinitely. |
| Historical Cost Accounting Concept | The actual amount paid for merchandise or other items bought is recorded at the actual amount paid. |
| Matching Expenses with Revenue Accounting Concept | The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period. |
| Business Entity Accounting Concept | Financial information is recorded and reported separately from the owner's personal financial information. |
