Match the Accounting Terms with the Description by Entering the Proper

question 32

Short Answer

Match the accounting terms with the description by entering the proper letter in the space provided.
A. Closing entries
B. Income Summary account
C. Interpret
D. Post-closing trial balance
________ 1. To understand and explain the meaning and importance of something (such as financial statements)
________ 2. Journal entries that transfer the results of operations (net income or net loss)to owner's equity and reduce the revenue, expense, and drawing account balances to zero
3. A statement that is prepared to prove the equality of total debits and credits after the closing process is completed
________ 4. A special owner's equity account that is used only in the closing process to summarize the results of operations

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Definitions:

Carrying Costs

Expenses associated with holding or storing inventory over a certain period, including warehousing, insurance, and spoilage costs.

Optimal Order Quantity

Refers to the number of units that should be ordered to minimize the total inventory costs like ordering, holding, and shortage costs.

MRO

Maintenance, repair, and operating materials.

MRO Inventories

MRO Inventories refer to stocks of Maintenance, Repair, and Operations supplies that are kept on hand to support the production process and facility operations.