Accounting - Purchases and Cash Payments

Goods that a business purchases in order to sell.

• merchandise

• vendor

• services

• supplies

A merchandising business that sells directly to consumers.

• corporation

• wholesaler

• retail

• service

The total shares of ownership in a corporation.

• drawing

• capital stock

• sales

• income summary

Characteristics of a corporation...check all that apply.

• legal rights of a person

• own property

• enter into contracts

• no need for legal paperwork

Accounts Payable are ____________.

• customers

• vendors

An account in a general ledger that summarizes all accounts in a subsidiary ledger.

• contra account

• controlling account

• charter

• stocks

A special journal used to record only purchases of merchandise on account.

• cash payments

• general

• sales

• purchases

An agreement between a buyer and a seller about payment for merchandise.

• trade

• terms of sale

• discount

• inventory

2/10, n30 means....

• the bill is due in 2 days

• 2% discount if paid within 30 days

• 10% discount if paid in 2 days, net due 30 days

• 2% discount if paid in 10 days, net due 30 days

A special journal used to record only cash payment transactions.

• sales

• purchases

• cash payments

• cash receipts