| A | B |
|---|
| Merchandise | Goods that a business purchases to sell. |
| Merchandising business | A business that purchases and resells goods. |
| Retail merchandising business | A merchandising business that sells to those who use or consume the goods. |
| Wholesale merchandising business | A business that buys and resells merchandise primarily to other merchandising businesses. |
| Accounts payable ledger | The subsidiary ledger containing vendor accounts. |
| Articles of incorporation | A legal document that identifies basic characteristics of a corporation, which is a part of the application submitted to a state to become a corporation. |
| Charter | A state approves the formation of a corporation by issuing a charter, the legal right for a business to conduct operations as a corporation. |
| Controlling account | An account in a general ledger that summarizes all accounts in a subsidiary ledger. |
| Corporation | An organization with the legal rights of a person which many persons or other corporations may own. |
| Share of stock | A unit of ownership in a corporation. |
| Stockholder | The owner of one or more shares of stock. |
| Subsidiary ledger | A ledger that is summarized in a single general ledger account. Accountants often refer to a subsidiary ledger as a subledger. |
| Vendor | A business from which merchandise, supplies, or other assets are purchased. |
| Schedule of Accounts Payable | A listing of vendor accounts, account balances, and the total amount due to all vendors. Some businesses call this listing an accounts payable trial balance. |
| Capital | The assets or other financial resources available to a business. |
| Capital Stock | The total shares of ownership in a corporation. |
| Cash Discount | A deduction that a vendor allows on an invoice amount to encourage prompt payment. |
| Cash Payments Journal | A special journal used to record only cash payment transactions. |
| Contra Account | An account that reduces a related account on a financial statement. |
| Cost of Merchandise | The amount a business pays for goods it purchases to sell. |
| Credit Limit | The maximum outstanding balance allowed to a customer by a vendor. |
| Discount Period | The period of time during which a customer may take a cash discount. |
| Due Date | The date by which an invoice must be paid. |
| General Amount Column | A journal amount column that is not headed with an account title. |
| Inventory | A list of assets, usually containing the value of individual items. |
| List Price | The retail price listed in a catalog or on an Internet site. |
| Merchandise Inventory | The goods a business has on hand for sale to customers. |
| Net Price | The price after the trade discount has been deducted from the list price. |
| Periodic Inventory | A merchandise inventory evaluated at the end of a fiscal period. |
| Perpetual Inventory | An inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise. |
| Physical Inventory | A periodic inventory conducted by counting, weighing, or measuring items of merchandise on hand. |
| Purchase Invoice | An invoice used as a source document for recording a purchase on account transaction. |
| Purchase On Account | A transaction in which the items purchased are to be paid for later. |
| Purchase Order | A form requesting that a vendor sell merchandise to a business. |
| Purchase Discount | When a company that has purchased merchandise on account takes a cash discount. |
| Purchases Journal | A special journal used to record only purchases of merchandise on account. |
| Requisition | A form requesting the purchase of merchandise. |
| Special Amount Column | A journal amount column headed with an account title. |
| Special Journal | A journal used to record only one kind of transaction. |
| Terms of Sale | An agreement between a buyer and a seller about payment for merchandise. |
| Trade Discount | A reduction in the list price granted to a merchandising business. |
