Chapter 9 Test Review

A legal document that identifies basic characteristics of a corporation.

• Articles of Incorporation

• Cash Discount

• Contra Account

• Controlling Account

A deduction that a vendor allows on an invoice amount to encourage prompt payment.

• Articles of Incorporation

• Cash Discount

• Contra Account

• Controlling Account

An account that reduces a related account on a financial statement.

• Articles of Incorporation

• Cash Discount

• Contra Account

• Controlling Account

An account in a general ledger that summarizes all accounts in a subsidiary ledger.

• Articles of Incorporation

• Cash Discount

• Contra Account

• Controlling Account

An organization with the legal rights of a person which many persons or other corporations may own.

• Corporation

• Credit Limit

• General Amount Column

• List Price

The maximum outstanding balance allowed to a customer by a vendor.

• Corporation

• Credit Limit

• General Amount Column

• List Price

A journal amount column that is not headed with an account title.

• Corporation

• Credit Limit

• General Amount Column

• List Price

The retail price listed in a catalog or on an Internet site.

• Corporation

• Credit Limit

• General Amount Column

• List Price

A merchandise inventory evaluated at the end of a fiscal period.

• Periodic Inventory

• Perpetual Inventory

• Purchase Order

• Requisition

An inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise.

• Periodic Inventory

• Perpetual Inventory

• Purchase Order

• Requisition