Match the Following Terms to Their Definitions

question 39

Multiple Choice

Match the following terms to their definitions.
-Current liabilities.

• A) The difference between total assets and total liabilities
• B) Sum of creditors, accrued liabilities and tax owed
• C) The value of the company's worth
• D) The amount a company owes to other entities

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Definitions:

Assets

Resources owned or controlled by a business or individual, which are expected to produce future economic benefits.

Liabilities

Financial obligations or debts owed by a business or individual to others, which must be paid in the future.

Journalize

The act of recording business transactions in the chronological order of occurrence within the accounting journals.

Transactions

Economic activities or events that affect the financial position of a company, recorded in its accounting records.