Match the Type of Account (A Through E) with the Business

question 6

Multiple Choice

Match the type of account (a through e) with the business transactions that follow.
-Retainer fee received from a client for future legal representation.

• A)Prepaid expense
• B)Accrued expense
• C)Unearned revenue
• D)Accrued revenue
• E)None of these choices

Calculate discounts, including successive discounts, and understand their cumulative effect.

Understand the concept of exchange rates and calculate the comparative value of currencies.

Interpret and calculate percentage changes in trade balances and understand their implications.

Determine the impact of sales promotions on pricing and calculate original prices from sale prices.

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Definitions:

AICPA

Stands for the American Institute of Certified Public Accountants, a professional organization that sets ethical and auditing standards for the accounting profession in the United States.

Comprehensive Income

The total change in equity for a reporting period, excluding any transactions from owners (such as dividends).

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

Distributions

Payments made from a company or a fund to its shareholders, often from profits or reserves.