Match Each of the Following Items with the Term or Phrase

question 115

Multiple Choice

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once.
-Current assets/Current liabilities

• A)Current ratio
• B)Working capital
• C)Quick assets
• D)Quick ratio
• E)Record an accrual and disclose in the notes to the financial statements
• F)Disclose only in notes to financial statements
• G)No disclosure needed in notes to financial statements

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Definitions:

Principal Balance

The remaining amount of money borrowed or invested, excluding any interest or fees.

Compounded Semi-annually

Interest on an investment or loan is calculated and added to the principal twice a year.

Amortization Schedule

A table detailing each periodic payment on an amortizing loan, showing amounts toward principal and interest and the remaining balance after each payment.

Compounded Semi-annually

An interest calculation method in which interest is added to the principal balance twice a year, leading to exponential growth.