Match the Term with Its Definition

question 59

Multiple Choice

Match the term with its definition.(There are more definitions than terms. )
-Duality Of Effects

• A)A summary of account names and numbers.
• B)A simplified version of an account in the General Ledger.
• C)Compares balance sheet items from two different time periods.
• D)When a dollar value is assigned to an item recorded in the accounting system.
• E)A journal entry that lowers the balance of the account.
• F)An amount that is posted on the left side of a T-account or ledger.
• G)The concept that a company must keep separate accounts by time period.
• H)An amount that is posted on the right side of a T-account or ledger.
• I)Assets are initially recorded at the amount paid to acquire them.
• J)When journal entries are recorded in the appropriate T-account or ledger.
• K)When a company's balance sheet has been verified by an outside auditor.
• L)The principle that a company should use the least optimistic measure,when uncertainty exists.
• M)The concept that any transaction must have at least two effects on the accounting equation.
• N)The mechanism used to record each transaction in the General Journal.

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Definitions:

Dividend Growth Approach

A method of valuing a company's stock based on the assumption that dividends will grow at a constant rate indefinitely.

Risk Premium Approach

A method of calculating the required rate of return for an investment by adding a premium for the investment's risk to the risk-free rate of return.

Capital Budgeting

The process a business undergoes to evaluate potential major projects or investments, analyzing the expected cash flows to determine whether they meet a set investment criteria.

Capital Structure

The composition of a company's funding through a mix of debt, equity, and other financing sources to finance its operations and growth.