Chapter 9 Accounting Review

An organization with the legal rights of a person and which may be owned by many persons.

• Capital stock

• Corporation

• Special journal

• Purchase invoice

A form prepared by the customer showing the price deduction taken by the customer for returns and allowances.

• Debit memorandum

• Cash discount

• Special journal

• Purchase invoice

Total shares of ownership in a corporation.

• Debit memorandum

• Share of stock

• Capital stock

• Purchase invoice

Credit allowed for the purchase price of returned merchandise resulting in a decrease in the customer's account payable.

• Purchases return

• Share of stock

• Retail merchandising business

• Purchase invoice

A deduction that a vendor allows on the invoice amount to encourage prompt payment.

• Purchases return

• Cash discount

• Purchases discount

• Purchase invoice

A cash discount on purchases taken by a customer

• Purchases return

• Cash discount

• Purchases discount

• Purchase invoice

A journal used to record only one kind of transaction

• Purchases return

• Debit memorandum

• Corporation

• Special journal

Each unit of ownership in a corporation

• Capital stock

• Purchases return

• Share of stock

• Special journal

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

• Retail merchandising business

• Purchases return

• Purchases discount

• Special journal

An invoice used as a source document for recording a purchase on account transaction

• Retail merchandising business

• Purchases return

• Purchases discount

• Purchase invoice