Match the Terms with the Definitions

question 48

Multiple Choice

Match the terms with the definitions.

-Reports beginning capital,plus net income,less withdrawals to compute ending capital.

• 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

Compute the cost of goods completed and transferred to finished goods.

Reconcile total costs to account for in process cost summaries.

Understand the conceptual foundation and importance of cost accounting systems in both manufacturing and service firms.

Recognize the difference between job order costing and other costing methods, and identify situations where job order costing is most appropriate.

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Definitions:

Working Capital Management

The management of a company’s short-term assets and liabilities to ensure its continued operation and maximize financial efficiency.

Inventory Management

The supervisory process focusing on ordering, storing, using, and selling a company's inventory.

Short-Term Debt Financing

Borrowing of funds for a period of one year or less to meet short-term financial needs of a company.

Credit Availability

The ease with which individuals or businesses can obtain loans or credit.