Accounting Chapter 14

Book that is summarized in a controlling account in the general ledger

• subsidiary ledger

• wholesale ledger

• contra account

A cash discount issued by the seller

• sales discount

• sales allowance

• sales tax

An account whose balance decreases another account's balance

• temporary account

• contra account

• permanent account

Credit card issued by a bank and honored by many businesses

• bankcard

• debit card

• credit card

Form that serves as a record of cash received is a receipt.

• true

• false

A business that sells to the final user

• retailer

• merchandiser

• wholesaler

The cash received by the business is not referred to as the cash receipt.

• true

• false

Retailers include clothing stores, CD and tape shops, and automobile dealerships.

• true

• false

The account Merchandise Inventory is classified in the chart of accounts as an asset.

• true

• false

A sale on account is paid for in cash when the merchandise is sold.

• false

• true