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Match the Following Definitions with the Appropriate Term

Question 227

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Match the following definitions with the appropriate term

Premises:
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.
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.
A listing of accounts and balances prepared after adjustments are recorded and posted to the ledger.
A balance sheet that lists items vertically in the order of assets, liabilities and equity.
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.
Responses:
Accrued expenses
Adjusting entry
Adjusted trial balance
Prepaid expenses
Report form balance sheet
Accounting period
Contra account
Profit margin
Unadjusted trial balance
Natural business year

Correct Answer:

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.
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.
A listing of accounts and balances prepared after adjustments are recorded and posted to the ledger.
A balance sheet that lists items vertically in the order of assets, liabilities and equity.
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.
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