CB QUESTIONS

is used in recording Purchases in the examples given

• Gross Method

• Domestic Method

• Ods Method

• Even Method

cash discounts are immediately deducted from Purchases and Accounts Payable.

• Net Cash

• Net Method

• Net

• Net Law

is a document that the seller gives to the buyer listing the items ordered as per the P.O. (purchase order of the buyer), together with the quantity, price, description, value added tax, the terms, and the total price of the items ordered.

• Sales

• Sales Invoice

• Sales outvoice

• Sale price

is a form used by the seller to notify the buyer that his account is credited (the amount is reduced) for the return of defective merchandise or allowance for damaged merchandise.

• Credit method

• Credit form

• Credit Memo

• Credit information

is a discount granted by the seller for early collection on a credit sale.

• Cash Discount

• Sales Discount

• Credit Discount

• Loan Discount

are reductions in sales, resulting from merchandise being returned by the customer or from seller’s reduction in the original sales price.

• Sales Returns and Allowances

• Sales

• Sales Credit

• Sale Discounts

this represents the cost of transporting the merchandise sold from the seller’s

place to the buyer’s place which is to be shouldered by the seller (business).

• Freight slope

• Freight

• Freight In

• Freight Out

this represents cash discounts granted by the suppliers to the buyers for early payments of their accounts.

• Cash Discount

• Purchase Discount

• Credit Discount

• Points Discount

is a list of accounts in the general ledger with balances. It provides a check on the accuracy of the posting (recording in the general ledger) by showing the equality of the total debits and total credits.

• Ledger

• General Ledger

• List of Accounts

• Trial Balance

This is simply because the steps or procedures involved which are performed in a systematic manner within one accounting period (usually one year), are on a continuing basis.

• Accounting

• Accounting Cycle

• Accounting Method

• Accounting List