Merchandising Businesses
Corporations
Ledgers/Controlling Accounts
Pricing
Random Questions
100

Merchandising Businesses Have Additional Accounts on Their Balance Sheets? True/False

True

100

What is an Organization With the Legal Rights of a Person or Many Persons?

Corporation

100

What is a General Ledger?

Account used to assemble similar transactions such as those that affect cash.

100

The retail price listed in a catalog or on an internet site is called....

List Price

100

The date by which an invoice must be paid is called the...

Due date

200

What Are Goods That A Business Plans to Sell?

Merchandise

200

The Assets or Other Financial Resources Available to a Business...

Capital

200

What are General Ledger Accounts Used for?

To prepare financial statements.

200

The price after the trade discount has been deducted from the list price is referred to as...

Net Price

200

The period of time during which a customer may take a cash discount is called the...

Discount Period

300

A Business That Purchases and Resells Goods is Called...

Merchandising Business

300

Does a Corporation Have a Single Capital and Drawing Account for the Owner? True/False

False, Corporations Have Seperate Capital Accounts for the Stock Issued and for the Earnings Kept in the Business.

300

A business where merchandise, supplies, or other assets are purchased is called...

A Vendor

300
Taking a cash discount reduces the company's cost of merchandise? True/False

True

300

What is a Credit Limit?

the maximum outstanding balance allowed to a customer by a vendor.

400

What Business Buys and Resells Merchandise Primarily to Other Merchandising Businesses?

Wholesale Merchandising Business

400

What is a Unit of Ownership called?

Share of Stock

400

A Ledger that is summarized in a single general ledger is called...

A Subsidiary Ledger

400

A reduction in the list price granted ti a merchandising business...

Trade Discount

400
An Agreement between a buyer and a seller about payment for merchandise is called...

Terms of Sale

500

A Merchandising Business That Sells to Those Who Use or Consume Goods is Called...

Retail Merchandising Business

500

How Are Corporations Formed? 

Formed by Applying to a State Government

500

An Account in a general ledger that summarizes all accounts in a subsidiary ledger is called a...

Controlling Account

500

A deduction that a vendor allows on an invoice amount to encourage a prompt payment...

Cash Discount

500

What is a Contra Account?

An account the reduces a related account on a financial statement