Match the Term with Its Definition

question 63

Multiple Choice

Match the term with its definition.
-A method of forecasting asset requirements using a ratio of assets to sales

• A)cash budget
• B)line of credit
• C)net working capital
• D)percentage-of-sales technique
• E)pro forma financial statements
• F)spontaneous debt financing

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Definitions:

Private Accounting

A field of accounting that involves working within a company to process financial transactions, manage financial records, and prepare internal financial reports.

Public Accounting

The field of accounting that involves providing assurance, tax, and consulting services to the public, typically performed by certified public accountants (CPAs).

Revenue Recognition

Revenue recognition is an accounting principle that outlines the specific conditions under which revenue is recognized or accounted for.

Guidelines

Guidelines are recommendations or principles that aim to streamline certain processes or set standards.