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Match the Appropriate Definition with Correct Term

Question 125

Matching

Match the appropriate definition with correct term

Premises:
Statements that show the effects of proposed transactions as if the transactions had already occurred.
The time span from when cash is used to acquire goods and services until cash is received from the sale of those goods and services.
Entries used to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account.
Accounts that accumulate data related to one accounting period only; they include income statement accounts, withdrawals, and the Income Summary account.
Recurring steps in preparing financial statement performed each accounting period, beginning with analyzing transactions and ending with a post-closing trial balance or reversing entries.
Accounts that report on activities related to one or more future accounting periods; they carry their ending balances into the next period.
A widely used working paper that is a useful tool for preparers in working with accounting information, usually not available to external decision makers.
A list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Various analyses and internal documents prepared by accountants when organizing information for internal and external decision makers.
A temporary account only used for the closing process that contains a credit for the sum of all revenues and a debit for the sum of all expenses.
Responses:
Closing entries
Operating cycle of a business
Permanent accounts
Work sheet
Temporary accounts
Pro forma statements
Working papers
Accounting cycle
Income summary
Post-closing trial balance

Correct Answer:

Statements that show the effects of proposed transactions as if the transactions had already occurred.
The time span from when cash is used to acquire goods and services until cash is received from the sale of those goods and services.
Entries used to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account.
Accounts that accumulate data related to one accounting period only; they include income statement accounts, withdrawals, and the Income Summary account.
Recurring steps in preparing financial statement performed each accounting period, beginning with analyzing transactions and ending with a post-closing trial balance or reversing entries.
Accounts that report on activities related to one or more future accounting periods; they carry their ending balances into the next period.
A widely used working paper that is a useful tool for preparers in working with accounting information, usually not available to external decision makers.
A list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Various analyses and internal documents prepared by accountants when organizing information for internal and external decision makers.
A temporary account only used for the closing process that contains a credit for the sum of all revenues and a debit for the sum of all expenses.
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