Match the Following Terms with the Appropriate Definition

question 41

Essay

Match the following terms with the appropriate definition.
A.Permanent accounts
B.Accounting cycle
C.Temporary accounts
D.Working papers
E.Income summary
F.Work sheet
G.Closing entries
H.Post-closing trial balance
I.Operating cycle of a business
J.Pro forma statements
____ 1.Analyses and other informal reports prepared by accountants when organizing the information presented in reports and financial statements.____ 2.The time span from when cash is used to acquire goods and services until cash is received from the sale of those goods and services.____ 3.A temporary account used only in the closing process and to where the balances of revenue and expense accounts are transferred.____ 4.A spreadsheet used to draft an unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements.____ 5.A list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.____ 6.Recurring steps performed each accounting period, starting with analyzing and recording of transactions in the journal and continuing through the post-closing trial balance (or reversing entries).____ 7.Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account.____ 8.Statements that show the effects of proposed transactions as if the transactions had already occurred.____ 9.Accounts that reflect on activities related to one or more future periods; they include all balance sheet accounts.____10.Accounts that are used to record transactions and events for one accounting period only; they include revenues, expenses, and withdrawals.

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Definitions:

Foreign Currency

Currency used in a country other than one's own, involved in international transactions or investment opportunities.

Home Currency

The currency in which a country conducts its principal economic activities and in which domestic financial statements are reported.

Exchange Rate Risk

The possibility of losing value in international financial transactions due to fluctuations in the currency exchange rates.

Manage Exchange Rate

Strategies or practices employed by individuals, businesses, or countries to mitigate or take advantage of fluctuations in exchange rates.