Accounting Chapter 9 Vocab

Goods that a business purchases to sell are called

• merchandise
• services
• supplies
• none of these

A ledger that is summarized in a single general ledger account is a

• general ledger
• purchases journal
• accounts payable ledger
• subsidiary ledger

The subsidiary account that contains the vendor accounts is

• accounts receivable
• accounts payable
• cash
• a liability

The controlling account for the vendor accounts is which general ledger account

• accounts receivable
• accounts payable
• merchandise
• purchases

You would debit cash and credit purchases, when buying merchandise for cash

• true
• false

Cost of Goods Sold is a section of the Chart of Accounts for a merchandising business

• true
• false

The terms of sale 1/10, n/30 means that 1/10 or 10% of the invoice amount may be deducted if paid within 30 days.

• True
• False

What is the special journal used to record only cash payment transactions ? 

• general amount column
• cash payments journal 
• purchases journal
• general ledger

When a cash discount is given which column does it get put in ?

• General debit
• Accounts Payable Debit
• Cash Debit 
• Purchases Discount Credit

What is 2/10 and n/30 ?

• The payment is due in 10 days and no discount.
• Pay within 30 days and get a 2 % discount 2 times within the 30 days.
• Get a 2 percent discount if you pay with 30 days.
• pay within 10 days and get a 2 % discount and the total invoice is due in 30 days .