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Exam 5
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Acid Test Ratio
(
quick ratio
) quick assets divided by current labilities
Allowance
an
adjustment made for merchandise
received damaged
or
unsatisfactory
cash discount
discounts
from quoted prices
are an
inducement for prompt payment
of invoices
cash payment journal
a
book of journal entry
in which
only cash disbursements
are
recorded
combination journal
a journal with
special & general columns
controlling account
a
summary maintained in the general ledger
with
a subsidary ledger
cost of goods sold
credit memo
a
source document
that
grants credit
to a
buyer for a purchase
return
or a
purchase allowance
current ratio (current asset ratio)
current assets divided by current liabilities
debit memo
a
journal request
for
credit
to be
granted by the supplier
is usually
issued by the buyer for the purchase price of the merchandise returned
FOB (free on board) destination
the
shipper(seller)is paying for the shipping
FOB(free on board) shipping point
the
buyer is paying for the shipping
goods available for sale
begining inventory + cost of goods purchased
gross margin (gross profit)
the
difference between net sales & cost of goods sold
invoice
buyers & seller view point
interest
money paid for the use of money
net purchases
purchases minus purchase returns & allowance minus
net sales
sales minus sales returns & allowance minus sales discount
purchase
a
temporary owner's equity account used to record the buying
of
merchandise for resale
purchase order
a
written order by a buyer for merchandise
or
other property
specified in the
purchase requisition
purchase requisition
a
form used to request the responsibile person
or
department
to
purchase merchandises or other property
purchase journal
a book of
orginial entry used
to
record purchases
of merchandise on
credit only
quick assets
cash, marketble securities, accounts & notes receivable
sales account
a
revenue account used to record sales
of merchandise
sales return
a
temporary's owner's equity
contra sales account
used to record credit
given to a customer for
shortages or damaged goods
schedule of accounts payable
an
alphabetical or numerical listing of supplier accounts & balances
summary posting
posting the
total of special columns
in a
journal at the end of the month
trade discounts
are
reductions
in the
cost of goods
number of days used in the bank's method?
360
Author
memaryme12
ID
29425
Card Set
Exam 5
Description
Study Guide
Updated
2010-08-12T02:37:31Z
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