Match the Terms with the Definitions

question 93

Multiple Choice

Match the terms with the definitions.
-​Used to prove the equality of the debits and credits in the ledger accounts.

• A)book of original entry
• B)chart of accounts
• C)compound entry
• D)correcting entry
• E)cross-reference
• F)four-column account
• G)general ledger
• H)journal
• I)journalizing
• J)posting
• K)ruling method
• L)slide error
• M)source document
• N)transposition error
• O)trial balance

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Definitions:

Amortization Expense

The method of incrementally expensing the original value of an intangible asset throughout its period of utility.

Straight-Line Amortization

A method of gradually writing off the nominal value of an intangible asset over its useful life in equal installments.

Business Combination

A transaction or other event in which an acquirer gains control over one or more businesses, possibly resulting in a new entity.

Fair Value Increment

The increase in the recorded cost of an asset over its previously recognized value, often assessed during business combinations to reflect current market valuations.