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Match the Following Definitions with the Appropriate Term

Question 159

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Match the following definitions with the appropriate term

Premises:
Various analyses and internal documents prepared by accountants when organizing information for internal and external decision makers.
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.
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.
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.
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.
Entries used to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account.
Statements that show the effects of proposed transactions as if the transactions had already occurred.
Accounts that report on activities related to one or more future accounting periods; they carry their ending balances into the next period.
Accounts that accumulate data related to one accounting period only; they include income statement accounts, withdrawals, and the Income Summary account.
Responses:
Permanent accounts
Accounting cycle
Temporary accounts
Working papers
Income summary
Work sheet
Closing entries
Post-closing trial balance
Operating cycle of a business
Pro forma statements

Correct Answer:

Various analyses and internal documents prepared by accountants when organizing information for internal and external decision makers.
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.
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.
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.
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.
Entries used to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account.
Statements that show the effects of proposed transactions as if the transactions had already occurred.
Accounts that report on activities related to one or more future accounting periods; they carry their ending balances into the next period.
Accounts that accumulate data related to one accounting period only; they include income statement accounts, withdrawals, and the Income Summary account.
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