Glossary

Question 1

An agreement to an offer resulting in a contract

Answer 1

Acceptance

Question 2

Those drivers under the directions and control of a funeral director who is liable for their actions

Answer 2

Agent Driver

Question 3

The party to whom the assignment is made

Answer 3

Assignee

Question 4

A means whereby one party conveys rights to another person who is not a party to the original contract

Answer 4

Assignment

Question 5

The party making the assignment

Answer 5

Assignor

Question 6

Recipient of the proceeds of a life insurance policy

Answer 6

Beneficiary

Question 7

Having no words other than the signature of the endorser

Answer 7

Blank Endorsement

Question 8

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

Answer 8

Endorsement

Question 9

An endorsement which limits the liability of the endorser; i.e. “For Deposit only”

Answer 9

Qualified Endorsement

Question 10

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

Answer 10

Restrictive Endorsement

Question 11

An endorsement which designates a particular person to whom payment is to be made

Answer 11

Special endorsement

Question 12

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

Answer 12

Cashier’s Check

Question 13

An order by depositer on the bank to pay a sum to a payee

Answer 13

Check

Question 14

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

Answer 14

Certified Check

Question 15

The person who executes any draft

Answer 15

Drawer

Question 16

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

Answer 16

Drawee

Question 17

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

Answer 17

Employee

Question 18

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

Answer 18

Independent Contractor

Question 19

One to whom goods are shipped by common carrier

Answer 19

Consignee

Question 20

One who ships goods by common carrier

Answer 20

Consignor

Question 21

A wage in tax statement given to an employee at the end of the year

Answer 21

W2

Question 22

A form that allows an employer to withhold the correct federal income tax from your pay, as well as state income tax, social security, and medicare

Answer 22

W4

Question 23

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

Answer 23

Merchant

Question 24

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

Answer 24

Median

Question 25

The value that occurs most frequently in a group of numbers

Answer 25

Mode

Question 26

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

Answer 26

Open End Credit | Revolving Credit

Question 27

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

Answer 27

Partnership

Question 28

A negotiable instrument containing a promise to pay

Answer 28

Promissory Note

Question 29

The return of a portion of a payment

Answer 29

Rebate

Question 30

A business owned by one person

Answer 30

Sole Proprietorship

Question 31

An agreement between two or more competent persons which is enforceable by law

Answer 31

Contract

Question 32

Those goods which are, at the time of the contract, in existence and owned by the seller

Answer 32

Existing Goods

Question 33

Moveable, tangible personal property

Answer 33

Goods

Question 34

The good specified by the buyer and seller

Answer 34

Identified Goods

Question 35

Automotive equipment made available for hire

Answer 35

Livery

Question 36

Funeral goods consumers purchase from a source other than the price list/funeral provider

Answer 36

Third Party Merchandise

Question 37

Those drivers not under the direct control of the funeral director

Answer 37

Volunteer Driver

Question 38

A reduction of the price given for payment of an account within the time limits established by the sales contract 2/10, n30-2% discount if paid 10 days from day of invoice/net amount must be paid within 30 days of invoice

Answer 38

Cash Discount

Question 39

The difference between current assets and current liabilities

Answer 39

Circulating Capital | Working Capital

Question 40

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

Answer 40

Closed End Credit | Installment Credit

Question 41

Assets=Liabilities + Owner's Equity

Answer 41

Basic Accounting Equation

Question 42

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

Answer 42

Consumer Credit

Question 43

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

Answer 43

Consumerism

Question 44

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

Answer 44

Corporation

Question 45

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

Answer 45

Credit

Question 46

A written order signed 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

Answer 46

Draft

Question 47

The party who hires employees to do certain work

Answer 47

Employer

Question 48

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

Answer 48

Fiduciary

Question 49

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

Answer 49

Income | Revenue

Question 50

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

Answer 50

Invoice

Question 51

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

Answer 51

Inventory | Merchandise

Question 52

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

Answer 52

Inventory turnover

Question 53

A reduction of selling price below the original selling price

Answer 53

Markdown

Question 54

The difference between merchandise cost and selling price

Answer 54

Markup

Question 55

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

Answer 55

Marketing

Question 56

The systematic recording, reporting, and analysis of financial transactions of a business

Answer 56

Accounting