Match the Term with Its Definition

question 19

Essay

Match the term with its definition.
a.Cash budget
b.Current ratio
c.Line of credit
d.Net working capital
e.pro forma financial statements
f.percentage-of-sales technique
g.spontaneous debt financing
-Current assets less current liabilities

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Definitions:

Cash Receipts Journal

An accounting ledger in which all cash inflows or receipts are recorded.

Accounts Payable Subsidiary

A detailed ledger containing all individual creditor accounts, supporting the summary-level accounts payable figure in the general ledger.

Control Account

An account in the general ledger that summarizes and checks the accuracy of individual records in subsidiary ledgers.

General Ledger

A comprehensive set of accounts that records all transactions of a business, providing the foundation for financial statements.