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Vocabulary
Application
Misc.
100
An agreement between a buyer and seller about a payment for merchandise
What is terms of sale?
100
Businesses that buy and resell merchandise to retail merchandising businesses.
What are wholesale merchandising businesses?
100
Of the two types of accounts purchases is this type.
What is temporary?
200
A merchandising business that sells to those who consume goods.
What is a retail merchandising business?
200
A business from which merchandise is purchases or supplies or other assets are bought.
What is a vendor?
200
The price a business pays for goods it purchases to sell.
What is cost of merchandise?
300
A business that purchases and sells goods.
What is a merchandising business?
300
When a business keeps its accounting records assuming that it will make money and continue business indefinately (CONCEPT)
What is Going Concern?
300
A cash purchase has what effect on the balance of the cash account.
What is a decrease?
400
An invoice used as a source document for recording a purchase on account.
What is a purhcase invoice?
400
A purchase invoice dated August 1 is received on August 3 and terms of sale are 20 days, the payment must be made by this date.
What is August 21?
400
When merchandise is recorded for the actual amount paid for it. (CONCEPT)
What is Historical Cost?
500
The amount added to the cost of merchandise to establish a selling price.
What is markup?
500
This is done to decrease the purchases account.
What is credit?
500
The two accounts affected (including which is debited and which is credited) when purchasing merchandise on account.
What is Debit Purchases, and Credit Accounts Payable?