| A | B |
|---|
| Board of directors | A group of persons elected by the stockholders to govern a corporation. |
| Credit memorandum | A form prepared by the vendor showing the amount deducted for returns and allowances. |
| Debit memorandum | A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance. |
| Declaring a dividend | Action by a board of directors to distribute corporate earnings to stockholders. |
| Dividends | Earnings distributed to stockholders. |
| General journal | A journal with two amount columns in which all kinds of entries can be recorded. |
| Internal controls | Processes and procedures employed within a business to ensure that its operations are conducted ethically, accurately, and reliably. |
| Purchases allowance | Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer’s account. |
| Purchases return | Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s account. |
| Retained earnings | An amount earned by a corporation and not yet distributed to stockholders. |
| Sales allowance | Credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business. |
| Sales return | Credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business. |
