Accounting Terms
Merchandise purchased to sell
What is purchases
Accounts Payable
What is liability
Purchased merchandise on account
What is a debit to purchases, credit accounts payable.
Assets - Liabilities
What is Owner's/Stockholder's Equity
Supplies-Office
What is asset
Account that keeps track of amount owed to the state for the sale of merchandise
Discount taken by the customer for paying early
What is sales discount
A 2% of the invoice amount deducted if paid within ten days
What is purchase/sales discount
Rent
What is Expense
Form used in a business to place an order for the purchase of goods from a vendor
What is Purchase order
Purchases returns and allowances
What is contra cost of merchandise sold
Revenue less operating expenses
What is Net income/ Net loss
Sales Tax Payable
What is liability
Includes purchases, purchases returns & allowances, and purchases discounts
What is cost of goods sold
Journal used to record transactions that cannot be recorded in a special journal
What is general journal
Purchases less Purchases Returns and Allowances less Purchases discount
What is Net Purchases
Cost of Merchandise
Purchases
What is the cost of merchandise sold
Purchased merchandise on account
What is debit purchases, A/P credit
A reduction in the list price granted to a merchandising business
What is trade discount
Dividends
What is Stockholder's Equity