Ch. 15 Accounting for Purchases and Cash Payments

A written offer to a supplier to buy certain items is called a ____ .

• purchase order
• purchase requisition

The date an invoice must be paid is called the ___ .

• due date
• invoice date

A ___ is a written request that a certain item or items be ordered.

• purchase requisition
• purchase order

The ___ is the actual cost to the business of the merchandise sold to customers.

• cost of merchandise sold
• inventory

When the supplier pays the shipping cost to the buyer’s destination or location, the term is called ___.

• FOB destination
• FOB shipping point

Information placed on an invoice that outlines a set of steps to be followed in processing the invoice for payment is a ___ .

• processing stamp

• payment stamp

The period of time within which an invoice must be paid in order to receive an amount off the invoice price is called a ___.

• discount period
• discount price

An ___ is a document that lists the credit terms and the quantity, description, unit price, and total cost of the items shipped to the buyer.

• invoice
• purchase order

A ledger that contains accounts for all creditors and the amount that is owed to each is the ___ .

• accounts payable subsidiary ledger

• accounts receivable subsidiary ledger

The amount paid for insurance is called the ___ .

• premium
• policy