Short-Term Securities Are Usually Called ________ and Long-Term Securities Are

question 67

Multiple Choice

Short-term securities are usually called ________ and long-term securities are usually called ________.

• A) notes; bills
• B) loans; notes
• C) bonds; stocks
• D) bills; bonds

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Definitions:

Post-closing Trial Balance

A list of all accounts and their balances after closing entries are made, serving as a check to ensure that debits equal credits.

Permanent Account Balances

The ongoing balances in balance sheet accounts that are carried over from one accounting period to the next.

Temporary Account Balances

Accounts that are closed at the end of each accounting period, including revenues, expenses, and dividends accounts.

Net Income

The net gain a company achieves after all operational costs and taxes are removed from its entire revenue.