Matching
Match the accounting terms with the description
Premises:
Property that will be used in the business for longer than one year
A type of income statement on which several subtotals are computed before the net income is calculated
A relationship between current assets and current liabilities that provides a measure of a firm's ability to pay its current debts
Assets consisting of cash, items that normally will be converted into cash within one year, or items that will be used up within one year
A format by which revenues and expenses on the income statement, and assets and liabilities on the balance sheet, are divided into groups of similar accounts and a subtotal is given for each group
Debts that must be paid within one year
The difference between net sales and the cost of goods sold
Debts of a business that are due more than one year in the future
The ease with which an item can be converted into cash
The amount of gross profit from each dollar of sales
Journal entries made to reverse the effect of certain adjusting entries involving accrued income or accrued expenses to avoid problems in recording future payments or receipts of cash in a new accounting period
A type of income statement where only one computation is needed to determine the net income (total revenue - total expenses = net income)
The number of times inventory is purchased and sold during the accounting period
Responses:
Long-term liabilities
Current liabilities
Single-step income statement
Liquidity
Multiple-step income statement
Plant and equipment
Inventory turnover
Gross profit
Current ratio
Gross profit percentage
Classified financial statement
Current assets
Reversing entries
Correct Answer:
Premises:
Responses:
Property that will be used in the business for longer than one year
A type of income statement on which several subtotals are computed before the net income is calculated
A relationship between current assets and current liabilities that provides a measure of a firm's ability to pay its current debts
Assets consisting of cash, items that normally will be converted into cash within one year, or items that will be used up within one year
A format by which revenues and expenses on the income statement, and assets and liabilities on the balance sheet, are divided into groups of similar accounts and a subtotal is given for each group
Debts that must be paid within one year
The difference between net sales and the cost of goods sold
Debts of a business that are due more than one year in the future
The ease with which an item can be converted into cash
The amount of gross profit from each dollar of sales
Journal entries made to reverse the effect of certain adjusting entries involving accrued income or accrued expenses to avoid problems in recording future payments or receipts of cash in a new accounting period
A type of income statement where only one computation is needed to determine the net income (total revenue - total expenses = net income)
The number of times inventory is purchased and sold during the accounting period
Premises:
Property that will be used in the business for longer than one year
A type of income statement on which several subtotals are computed before the net income is calculated
A relationship between current assets and current liabilities that provides a measure of a firm's ability to pay its current debts
Assets consisting of cash, items that normally will be converted into cash within one year, or items that will be used up within one year
A format by which revenues and expenses on the income statement, and assets and liabilities on the balance sheet, are divided into groups of similar accounts and a subtotal is given for each group
Debts that must be paid within one year
The difference between net sales and the cost of goods sold
Debts of a business that are due more than one year in the future
The ease with which an item can be converted into cash
The amount of gross profit from each dollar of sales
Journal entries made to reverse the effect of certain adjusting entries involving accrued income or accrued expenses to avoid problems in recording future payments or receipts of cash in a new accounting period
A type of income statement where only one computation is needed to determine the net income (total revenue - total expenses = net income)
The number of times inventory is purchased and sold during the accounting period
Responses:
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