Accounting II Chapter 9 Terms
| A | B |
|---|---|
| merchandise | goods that a business purchases to sell |
| merchandising business | a business that purchases and resells goods |
| retail merchandising business | a merchandising business that sells to those who use or consume the goods |
What is a merchandising business that sells to those who use or consume the goods?
A business that purchases an sells goods. retail merchandising business. A merchandising business that sells to those who use or consume the goods. wholesale merchandising business.
What kind of transactions are used to record a purchase that is paid for later?
Accounting II Final Review
| A | B |
|---|---|
| purchase on account | A transaction in which the merchandise purchased is to be paid for later. |
| purchase invoice | An invoice used as a source document for recording a purchase on account transaction. |
| cash payments | A special journal used to record only cash payment transactions. |
What is the term for goods that a business has in stock to sell?
Inventory (American English) or stock (British English) refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation. In the context of services, inventory refers to all work done prior to sale, including partially process information.
What are examples of merchandising business?
There are virtually thousands of examples of merchandising businesses. Some of the most recognizable stores that are merchandising businesses include: Wal-Mart, Target, Dillard’s, Macy’s, JCPenney, Kohl’s, Michaels Crafts, Lowe’s, Home Depot, and Toys R Us.
What do you call the source document for a purchase of merchandise?
Purchase invoice: or bill. Issued by the seller to the buyer to indicate that merchandise has been delivered.
What is a cash discount on purchases taken by a customer called?
A cash discount on purchases taken by a customer is called a sale. The price a business pays for goods it purchases is called. Cost of merchandise. A petty cash on hand amount that is more than a recorded amount is called cash over.
What two accounts are used when recording a cash payment of a purchase?
Combination of cash and credit When this occurs, you must debit and credit various accounts. Record any cash payments as a debit in your cash receipts journal like usual. Then, debit the customer’s accounts receivable account for any purchase made on credit. In your sales journal, record the total credit entry.
What makes up the selling price of a business?
The price a business pays for goods it purchases to sell. The amount added to the cost of merchandise to establish the selling price. A business from which merchandise is purchased or supplies or other assets are bought. A transaction in which the merchandise purchased is to be paid for later.
Do you have to pay taxes on the sale of a business?
Like any other transaction that makes you money, the sale of a business is considered income and you are required by law to pay taxes on it. This income is often classified as a capital gain and it applies whether you’re selling the assets of a company or shares of a company’s stock. How About a Tax-free Deal?
What happens when you buy a business from a company?
It simply involves transferring a group of assets, in the form of shares. A buyer who purchases all the shares in a business will indirectly hold and control the business, including all its assets and liabilities. Acquiring a business from a company is more complex. It may involve acquiring only certain assets and certain liabilities.
How much does it cost to buy a business?
2. The purchase price of Twenty Thousand Dollars ($20,000.00) shall be paid as follows: $ 2,000.00 deposit paid to Block Real Estate Services, LLC the date of this fully executed Agreement to be applied to purchase price at closing. $ 18,000.00 Balance of said purchase price paid via Cashiers Check on November 30, 2009. 3.
