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Flashcards in Accounting glossary Deck (60):
1

A person in possession of an instrument.

Bearer

2

One in possession of commercial paper.

Holder

3

A business owned by one person.

Sole Proprietorship

4

An order by a depositor on the bank to pay a sum of money to a payee.

Check

5

A chart on which all sales are listed showing the number of sales in any sales bracket.

Sales Frequency Chart

6

The person who executes any draft.

Drawer

7

Balance of costly goods paid for in small monthly (fractional) payments over a period of time.

Closed End (Installment) Credit

8

An artificial being, invisible, intangible and existing only in contemplation of law; an entity that has a distinct existence separate and apart from the existence of its individual members.

Corporation

9

One to whom goods are shipped by common carrier.

Consignee

10

The emphasis placed on providing to customers products and services that are safe, reliable, and honestly advertised; also a social movement that seeks to strengthen the rights of consumers relative to sellers.

Consumerism

11

A claim that is supported by a pledge of assets belonging to the debtor.

Secured Claim

12

An endorsement which limits the liability of the endorser.

Qualified Endorsement

13

A negotiable instrument containing a promise to pay.

Promissory Note

14

Those goods or stock of goods which are held for resale at a profit.

Inventory (Merchandise)

15

A reduction of selling price below the original selling price.

Markdown

16

The return of a portion of a payment.

Rebate

17

A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit.

Negotiable Instrument (Commercial Paper)

18

A line of credit that may be used over and over again up to a certain borrowing limit.

Open-End Credit (Revolving Account)

19

The contract existing between the cosigner (shipper) and the carrier.

Bill of Lading

20

A reduction of the price given for payment of an account within the time limits established by the sales contract. 2/10, n/30 = 2% discount if paid 10 days from date of invoice/net amount must be paid within 30 days.

Cash Discount

21

A formal financial statement which presents the income, expenses, and resulting net profit or net loss for a given period.

Income Statement

22

The difference between current assets and current liabilities.

Circulating (Working) Capital

23

A secured loan on a parcel of real estate.

Mortgage

24

The value in an ordered set of values which represents a midpoint, whereby there are an equal number of values above and below the midpoint value.

Median

25

A check drawn on a bank's own funds and signed by a responsible bank official.

Casher's Check

26

The person hired to perform work and who is obligated both as to the work to be done and as the manner in which it is to be done.

Employee

27

A source document showing quantity, description, prices of items, total amount of purchase and the terms of payment.

Invoice

28

The acknowledgement by a bank of a receipt of money with an agreement of repayment.

Certificate of Deposit

29

An inflow of assets as a result of selling a product or providing a service.

Income (Revenue)

30

A person who deals in goods of a kind, or otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction.

Merchant

31

An endorsement which designates the particular person to whom payment is to be paid.

Special Endorsement

32

The person, company, or financial institution ordered to pay a draft.

Drawee

33

The person who executes a promissory note.

Maker

34

The transfer of title to goods from the seller to the buyer for a consideration called the price.

Sale

35

An agreement that payment for a product or service will be made at some later date.

Credit

36

The signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument.

Endorsement

37

The process of planning and executing the development, pricing, promotion, and distribution of an organization's goods/services.

Marketing

38

That value that occurs most frequently in a group of numbers.

Mode

39

A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit.

Commercial Paper (Negotiable Instrument)

40

The voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit.

Partnership

41

The amount by which the bill or invoice will be reduced when a minimum quantity of merchandise has been ordered.

Quantity Discount

42

Provides you with information that will help you in operating a business, make right decisions; it is the means by which business information is communicated.

Accounting

43

The party to whom an negotiable instrument is made payable.

Payee

44

A commercial paper payable to bearer; i.e., to the person having possession of such.

Bearer Paper

45

A person who becomes the holder of a negotiable instrument by endorsements which names him/her as the person to whom the instrument is negotiated.

Endorsee

46

A relationship of trust and confidence, such as that which exists between partners in a partnership.

Fiduciary

47

A written order singed by one person requiring the person to whom it is addressed to pay a particular sum of money to the bearer, either on demand or at a certain time.

Draft

48

One who ships goods by common carrier.

Cosigner

49

A group of potential customers processing purchasing power and unsatisfied needs.

Market

50

The number of times the average inventory has been sold or used up during a period.

Inventory Turnover

51

The number of times sales in a given price bracket occur over a fixed period of time.

Sales Frequency

52

A check for which the bank assures that the drawer has sufficient funds to make payment.

Certified Check

53

The party who hires employees to do certain work.

Employer

54

Person who writes his or her name on the back of an instrument.

Endorser

55

A commercial paper made payable "to the order of" some named party; the word "order" or its equivalent must be used.

Order Paper

56

Having no words other than the signature of the endorser (referring to checks).

Blank Endorsement

57

A type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants.

Consumer Credit

58

An endorsement which prevents the use of the instrument for anything except the stated use.

Restrictive Endorsement

59

One who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as a means by which the contract is executed, except for specifications established in the contract.

Independent Contractor

60

The difference between merchandise cost and selling price.

Markup