Accounting II - Chapter 9 Test Review

A business that buys and resells merchandise primarily to other merchandising businesses.

• Wholesale merchandising business

• Retail merchandising business

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

• Wholesale merchandising business

• Retail merchandising business

The owner of one or more shares of stock.

• Stockholder

• Board of directors

Each unit of ownership in a corporation.

• Share of stock

• Credit limit

An organization with the legal rights of a person which many persons or other corporations may own.

• Corporation

• Proprietorship

The retail price listed in a catalog or on an Internet site.

• List price

• Trade discount

A reduction in the list price granted to a merchandising business. These discount amounts are not journalized.

• Trade discount

• Cash discount

A legal document that identifies basic characteristics of a corporation.

• Articles of incorporation

• Charter

An account in a general ledger that summarizes all accounts in a subsidiary ledger (ex: Accounts Payable).

• Controlling account

• Contra account

A form requesting the purchase of merchandise.

• Requisition

• Purchase order