Solved

Match the Appropriate Definition with the Following Terms

Question 92

Matching

Match the appropriate definition with the following terms.

Premises:
A balance sheet that lists items vertically in the order of assets, liabilities and equity.
A listing of accounts and balances prepared after adjustments are recorded and posted to the ledger.
Items paid for in advance of receiving their benefits; recorded as an asset when purchased and expensed when used.
Any length of time that an organization's activities are divided into and reported by financial statements.
Costs that are incurred in a period but are both unpaid and unrecorded, requiring an adjustment at the end of the period.
A listing of accounts and balances prepared after external transactions are recorded but before adjustments are recorded.
A useful measure of a company's operating results determined by dividing net income by net sales.
A 12-month period, used by companies with seasonal variation, that ends when a company's sales activities are at their lowest point.
A journal entry made at the end of an accounting period to reflect a transaction or event that is not yet recorded; affects one or more income statement account and one or more balance sheet account, but never cash.
An account linked with another account and having an opposite normal balance.
Responses:
Unadjusted trial balance
Accounting period
Accrued expenses
Adjusting entry
Natural business year
Profit margin
Report form balance sheet
Prepaid expenses
Contra account
Adjusted trial balance

Correct Answer:

A balance sheet that lists items vertically in the order of assets, liabilities and equity.
A listing of accounts and balances prepared after adjustments are recorded and posted to the ledger.
Items paid for in advance of receiving their benefits; recorded as an asset when purchased and expensed when used.
Any length of time that an organization's activities are divided into and reported by financial statements.
Costs that are incurred in a period but are both unpaid and unrecorded, requiring an adjustment at the end of the period.
A listing of accounts and balances prepared after external transactions are recorded but before adjustments are recorded.
A useful measure of a company's operating results determined by dividing net income by net sales.
A 12-month period, used by companies with seasonal variation, that ends when a company's sales activities are at their lowest point.
A journal entry made at the end of an accounting period to reflect a transaction or event that is not yet recorded; affects one or more income statement account and one or more balance sheet account, but never cash.
An account linked with another account and having an opposite normal balance.
Related Questions