ACCT CH 9

merchandise

• Goods that a business purchases to sell.
• A business from which merchandise, supplies, or other assets are purchased.
• When a company that has purchased merchandise on account takes a cash discount.

merchandising business

• A business that purchases and resells goods.
• A deduction that a vendor allows on an invoice amount to encourage prompt payment.
• The total shares of ownership in a corporation.

retail merchandising business

• A merchandising business that sells to those who use or consume the goods.
• A business that purchases and resells goods.
• The subsidiary ledger containing vendor accounts.

wholesale merchandising business

• business that buys and resells merchandise primarily to other merchandising businesses.
• A form requesting that a vendor sell merchandise to a business.
• The retail price listed in a catalog or on an Internet site.

corporation

• An organization with the legal rights of a person which many persons or other corporations may own.
• A form requesting the purchase of merchandise.
• The price after the trade discount has been deducted from the list price.

capital

• The assets or other financial resources available to a business.
• A journal amount column headed with an account title.
• The period of time during which a customer may takea cash discount.

share of stock

• A unit of ownership in a corporation.
• A journal amount column that is not headed with an account title.
• The owner of one or more shares of stock.

stockholder

• The owner of one or more shares of stock.
• A journal used to record only one kind of transaction.
• The maximum outstanding balance allowed to acustomer by a vendor

capital stock

• The total shares of ownership in a corporation.
• A ledger that is summarized in a single general ledger account.
• The goods a business has on hand for sale to customers.

articles of incorporation

• A legal document that identifies basic characteristics of a corporation, which is a part of the application submitted to a state to become a corporation.
• A list of assets, usually containing the value of individual items.
• The date by which an invoice must be paid.