Match the terms below with the correct definitions.
-Once-a-year accounting entries recorded on the first day of the fiscal period
A)Property and equipment
B)Reversing entries
C)Gross profit
D)Current ratio
E)Working capital
F)Net income or net loss
G)Net sales
H)Income from operations
I)Long-term liabilities
J)Liquidity

Question

Quizplus · Accepted Answer

Reversing entries are accounting entries made at the beginning of a fiscal period to reverse adjusting entries made at the end of the previous period, ensuring that transactions are properly accounted for in the correct period.

Answer: A
 Property and equipment refers to long-term tangible assets that are used in the production of goods or services and are not intended for sale.

Answer: F
 Net income or net loss refers to the amount of profit or loss for a given period after accounting for all revenues and expenses.

Answer: G
 Net sales refer to the total amount of sales revenue earned by a company during a given period, after accounting for discounts, returns, and other allowances.

Answer: H
 Income from operations refers to the amount of profits earned by a company from its core business operations, before interest and taxes are factored in.

Answer: I
 Long-term liabilities refer to debts or financial obligations that extend beyond the current fiscal period, such as loans or bonds.

Answer: D
 The current ratio is a measure of a company's short-term liquidity, calculated by dividing its current assets by its current liabilities.

Answer: E
 Working capital refers to the difference between a company's current assets and its current liabilities, representing the amount of funds available for day-to-day operations.

Answer: J
 Liquidity refers to a company's ability to meet its financial obligations as they come due, and is a measure of how easily its assets can be converted into cash.

Match the Terms Below with the Correct Definitions