Ch 8 - Purchases and AP VOCAB Flashcards Preview

Principles of Accounting > Ch 8 - Purchases and AP VOCAB > Flashcards

Flashcards in Ch 8 - Purchases and AP VOCAB Deck (16):
1

Define accounts payable ledger.

subsidiary ledger that contains a separate account for each creditor.

2

Define cash discount.

discount offered by suppliers for payment received within a specified period of time.

3

Define cost of goods sold.

actual cost to the business of merchandise sold to customers.

4

Define freight in account (aka transportation in account).

account showing transportation charges for items purchased.

5

Define purchase allowance.

price reduction from the amount originally billed.

6

Define purchase invoice.

bill received for goods purchased.

7

Define purchase order.

order to the supplier of goods specifying items needed, quantity, price and credit terms

8

Define purchase requisition.

list sent to the purchasing dept showing the items to be ordered

9

Define purchase return.

return of unsatisfactory goods

10

Define purchases account.

account used to record cost of goods bought for resale during a period.

11

Define purchases discount.

cash discount offered to the customer for payment within a specified period

12

Define purchases journal.

special journal used to record the purchases of goods on credit

13

Define receiving report.

form showing quantity and condition of goods received

14

Define sales discount

cash discount offered by supplier for payment within a specified period

15

Define sales invoice.

supplier's billing document

16

Define schedule of account payable.

list of all balances owed to credtors