Match the Term with Its Definition

question 34

Multiple Choice

Match the term with its definition.
-Profits as a percentage of sales

• A)accrued expenses
• B)cash flow activities
• C)cost of goods sold
• D)gross profits
• E)long-term debt
• F)long-term note
• G)net profits
• H)operating profits
• I)profit margins
• J)profits before taxes (taxable income)
• K)short-term notes
• L)statement of cash flows

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Definitions:

Depletion

An accounting method used to allocate the cost of extracting natural resources, such as minerals or timber, from the earth, reflecting the consumption of the resource over time.

Expense Account

An account used in accounting to record costs or expenses incurred by a business or individual for operational purposes.

Metal Ores

Naturally occurring solid materials from which metals can be extracted through mining and processed for use.

Residual Value

The forecasted financial value of an asset as it approaches the close of its effective life.