Match These Terms to Their Correct Definition

question 140

Multiple Choice

Match these terms to their correct definition.
-Length of time required to collect the receivable from a credit sale.

• A)Accounts receivable turnover ratio
• B)Cash ratio
• C)Gross profit percentage
• D)Inventory turnover ratio
• E)Net profit margin percentage
• F)Operating margin percentage
• G)Quick ratio
• H)Total payout ratio

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Definitions:

Temporary Accounts

These include accounts that are closed at the end of each accounting period, including income, expense, and withdrawal accounts.

Carried Forward

The act of transferring a balance from one period to the next on financial statements or ledgers.

Owners' Equity

The total value belonging to the owners of a company, calculated as the company's total assets minus its total liabilities, indicative of the net worth.

Net Worth

The total value of an individual's or organization's assets minus liabilities, representing the financial health or value of the entity.