Match the Terms with the Definitions

question 38

Multiple Choice

Match the terms with the definitions.

-The decrease in assets (or increase in liabilities) as a result of efforts to produce revenues.

• A) account
• B) accounts payable
• C) accounts receivable
• D) accounting equation
• E) assets
• F) balance sheet
• G) business entity
• H) business entity concept
• I) business transaction
• J) drawing
• K) expenses
• L) income statement
• M) liability
• N) net income
• O) net loss
• P) notes payable
• Q) owner's equity
• R) revenues
• S) statement of owner's equity

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies.

Inventories

The complete list of items such as property, goods in stock, or the contents of a building, often held for sale in the regular course of a business.

Profit After Tax

The net income remaining after all taxes have been deducted from total revenue.

Unrealised Profit

Profit that has been made on paper through an investment but has not yet been cashed in by selling the asset.