Unit 2 Acc Chapter 13 Glossary

Question 1

Credit Transactions

Answer 1

When goods are exchanged but the cash relating to the stock is not exchanged until some later date, meaning the customer owes a debt to the seller

Question 2

Invoice

Answer 2

A source document that verifies the details of a credit transaction

Question 3

Sales invoice

Answer 3

A source document that verifies a credit sale of stock

Question 4

Debtor

Answer 4

A customer who owes a debt to the business for goods or services sold to them on credit

Question 5

Creditor

Answer 5

A supplier who is owed a debt by the business for goods and services purchased from them on credit

Question 6

Credit purchase

Answer 6

A transaction that involves the acquisition of stock from a supplier who does not require payment until a later date

Question 7

Purchases Journal

Answer 7

An accounting record which summaries all transactions involving the purchase of stock on credit

Question 8

Creditors record

Answer 8

A subsidiary accounting record which records each individual transactions with each individual creditor, and shows the balance owing to that creditor at any point in time

Question 9

Creditors schedule

Answer 9

A listing of the name and balance of each creditor’s record

Question 10

Credit sale

Answer 10

A transaction that involves the provision of goods to a customer who is not required to pay until later date

Question 11

Sales Journal

Answer 11

An accounting record that summarises all transactions involving the sale of stock on credit during a reporting period

Question 12

Debtors record

Answer 12

A subsidiary accounting record which details each individual transaction with each individual debtor, and shows the balance owed by that debtor at any point in time

Question 13

Debtors schedule

Answer 13

A listing of the name and balance of each debtor’s record