Chapter 11 Test Review

A group of persons elected by the stockholders to govern a corporation.

• Board of Directors

• Credit Memorandum

• Debit Memorandum

• Declaring a Dividend

A form prepared by the vendor showing the amount deducted for returns and allowances.

• Board of Directors

• Credit Memorandum

• Debit Memorandum

• Declaring a Dividend

A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance.

• Board of Directors

• Credit Memorandum

• Debit Memorandum

• Declaring a Dividend

Action by a board of directors to distribute corporate earnings to stockholders.

• Board of Directors

• Credit Memorandum

• Debit Memorandum

• Declaring a Dividend

Earnings distributed to stockholders.

• Dividends

• General Journal

• Purchases Allowance

• Purchases Return

A journal with two amount columns in which all kinds of entries can be recorded.

• Dividends

• General Journal

• Purchases Allowance

• Purchases Return

Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer’s account payable to the vendor.

• Dividends

• General Journal

• Purchases Allowance

• Purchases Return

Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s account payable to the vendor.

• Dividends

• General Journal

• Purchases Allowance

• Purchases Return

An amount earned by a corporation and not yet distributed to stockholders.

• Retained Earnings

• Sales Allowance

• Sales Return

Credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business.

• Retained Earnings

• Sales Allowance

• Sales Return