Accounting 1 - Ch. 9 Review

An organization with the legal rights of a person and which may be owned by many persons.

• corporation
• sole proprietorship
• partnership
• stock

Total shares of ownership in a corporation.

• capital stock
• debit memorandum
• share of stock
• purchase invoice

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

• cash discount
• purchases return
• debit memorandum

A journal used to record only one kind of transaction.

• special journal
• general journal
• debit memorandum
• capital stock

Each unit of ownership in a corporation.

• share of stock
• debit memorandum
• special journal
• purchase invoice

A merchandising business that sells to those who use or consume the goods.

• retail merchandising business
• corporation
• capital stock
• debit memorandum

An invoice used as a source document for recording a purchase on account transaction.

• purchase invoice
• special journal
• debit memorandum
• capital stock

The purchases account is classified as

• an expense account.
• an asset account.
• a liability account.
• a cost account.

The source document for a cash purchase is

• a memorandum.
• an invoice.
• a receipt.
• a check.

Supplies bought for use in a business are recorded in the 

• supplies expense account.
• purchases account.
• supplies account.
• cash account.