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Match the Terms with Their Correct Meanings

question 128

Multiple Choice

Match the terms with their correct meanings.

-Difficult, painful breathing

Learn the steps of the accounting cycle, including journalizing transactions, posting to the ledger, preparing trial balances (unadjusted, adjusted, and post-closing), and preparing financial statements.
Comprehend the process and importance of adjusting entries in the preparation of financial statements.
Recognize how and when to use reversing entries in the accounting process.
Identify and classify current and long-term assets and liabilities on the balance sheet.

Definitions:

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction.

Salary Allowance

A mechanism for dividing earnings of a partnership based on personal services provided by the partners (not an expense).

Interest Allowance

A mechanism for dividing earnings of a partnership based on a percentage of capital balances of the partners (not an expense).

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