Accounting Chapter 15/17 Vocabulary

19 Questions | By Gerste | Updated: Mar 20, 2022 | Attempts: 101

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As you start your journey as an accountant there are some words that will be mentioned throughout the course of your studies. You should therefore ensure you understand each word so that you don’t get confused once they come up. Test your accounting vocabulary via the quiz below. Good luck!

Questions and Answers

1.

A written offer to a supplier to buy certain items is called a(n) ____________.
- A.
  
  Invoice
- B.
  
  Purchase Order
- C.
  
  Packing Slip
- D.
  
  Tickler File
2.

The date an invoice must be paid is called the _______.
- A.
  
  Due Date
- B.
  
  Discount Period
- C.
  
  Processing Stamp
- D.
  
  Tickler File
3.

The ______ is the actual cost to the business of the merchandise sold to customers.
- A.
  
  Purchase Discount
- B.
  
  Discount Rate
- C.
  
  Premium
- D.
  
  Cost of Merchandise
4.

When the supplier pays the shipping cost to the buyer's destination or location, the term is called ___________.
- A.
  
  FOB Destination
- B.
  
  FOB Shipping Point
- C.
  
  Transportation In
- D.
  
  Processing Stamp
5.

A(n) _________ is a written request that a certain item or items be ordered.
- A.
  
  Purchase Order
- B.
  
  Purchase Discount
- C.
  
  Purchase Requisition
- D.
  
  Purchase Allowance
6.

Information placed on an invoice that outlines a set of steps to be followed in processing the invoice for payment is a(n) __________.
- A.
  
  Packing Slip
- B.
  
  Tickler File
- C.
  
  Invoice
- D.
  
  Processing Stamp
7.

The period of time within which an invoice must be paid in order to receive an amount off the invoice price is called______.
- A.
  
  Due Date
- B.
  
  Discount Period
- C.
  
  Purchase Discount
- D.
  
  Cost of Merchandise
8.

A(n) ________ is a document that lists the credit terms and the quantity, description, unit price, and total cost of the items shipped to the buyer.
- A.
  
  Purchase Order
- B.
  
  Purchase Requisition
- C.
  
  Invoice
- D.
  
  Debit Memo
9.

A ledger that contains accounts for all creditors and the amount that is owed to each is the ______.
- A.
  
  Purchases Account
- B.
  
  Cash In Bank
- C.
  
  General Ledger
- D.
  
  Accounts Payable Subsidiary Ledger
10.

The amount paid for insurance is called the ________.
- A.
  
  Bankcard Fee
- B.
  
  Premium
- C.
  
  Expense
- D.
  
  Insurance Fee
11.

The form that lists the items included in a shipment is called a(n) ______.
- A.
  
  Tickler File
- B.
  
  Purchase Order
- C.
  
  Packing Slip
- D.
  
  Due Date
12.

The account used to record the cost of merchandise purchased during the fiscal period is the ______ .
- A.
  
  Accounts Payable Subsidiary Ledger
- B.
  
  Purchases Account
- C.
  
  Cost of Merchandise
- D.
  
  Purchases Allowance
13.

A cash discount that suppliers often offer credit customers for early payment is a(n) _____ .
- A.
  
  Discount Period
- B.
  
  Debit Memorandum
- C.
  
  Purchases Allowance
- D.
  
  Purchase Discount
14.

Merchandise returned by the buyer to the supplier for full credit is a(n) ______ .
- A.
  
  Purchase Requisition
- B.
  
  Purchases Account
- C.
  
  Purchases Allowance
- D.
  
  Purchases Return
15.

An amount charged by a bank for handling a business' bankcard sales slips is a(n) ______.
- A.
  
  Processing Stamp
- B.
  
  Cost of Merchandise
- C.
  
  Bankcard Fee
- D.
  
  Premium
16.

A(n) ______ contains invoices to be paid, arranged by their due dates.
- A.
  
  Bankcard Fee
- B.
  
  Debit Memorandum
- C.
  
  Invoice
- D.
  
  Tickler File
17.

A business receives a(n) _______ when it keeps unsatisfactory merchandise, buy pays less than the original price.
- A.
  
  Purchases Returns
- B.
  
  Purchases Requisition
- C.
  
  Purchases Account
- D.
  
  Purchases Allowance
18.

The source document prepared by the buyer to notify the seller that the seller's account is to be decreased is called a(n) ______.
- A.
  
  Debit Memorandum
- B.
  
  Invoice
- C.
  
  Packing Slip
- D.
  
  Processing Stamp
19.

Shipping terms of ______ means that the buyer pays the shipping charge from the supplier's shipping point.
- A.
  
  FOB Destination
- B.
  
  Premium
- C.
  
  FOB Shipping Point
- D.
  
  Purchase Order