Listed Below Are Five Terms Followed by a List of Phrases

question 31

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Deferred revenue

• A)Cash received from a customer for goods or services to be provided in a future period.
• B)Accumulated net income less dividends since the inception of the corporation.
• C)Converting cash to inventory to receivables to cash.
• D)Cash paid in advance for a cost of the company.
• E)Amounts invested by shareholders in the corporation.

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Definitions:

Supplies

Items that are consumed during the operation of a business, such as office supplies, which are essential for day-to-day activities but not directly tied to the product being sold.

Accounts Payable

A liability account that records amounts a company owes to suppliers for goods or services purchased on credit.

Withdrawals

Amounts of money taken out from a business by its owner(s) for personal use, not considered business expenses.

Credit Side

The right side of an accounting ledger where increases in liabilities, equity, and income or decreases in assets and expenses are recorded.