| A | B |
|---|
| component percentage | the percentage relationship between one financial statement item and the total that includes that item. |
| adjusting entries | journal entries recorded to update GL accounts at the end of a fiscal period. |
| permanent accounts | accounts used to accumulate information from one fiscal period to the next. |
| temporary accounts | accounts used to accululate information until it is transferred to the owner's capital account. |
| closing entries | journal entries used to prepare temporary accounts for a new fiscal period. |
| post-closing trial balance | a trial balance prepared after the closing entries are posted. |
| accounting cycle | the series of accounting activities included in recording financial information for a fiscal period. |
| partnership | a business in which two or more persons combine their assets and skills. |
| partner | each member of a partnership. |
| merchandising business | a business that perchases and sells goods. |
| retail merchandising business | a merchandising business that sells to those who use or consume the goods. |
| merchandise | goods that a merchandising business purchases to sell |
| cost of merchandise sold | the price a business pays for goods it purchases to sell. |
| markup | the amount added to the cost of merchandise to establish the selling price. |
| vendor | a business from which merchandises is purcashed or supplies or other asset5s are bought. |
| 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. |
