Match the Following Terms with Their Correct Definition

question 47

Multiple Choice

Match the following terms with their correct definition.
-A fund used to pay for small amounts to avoid the time and expense of paying by check

• A)Cash equivalents
• B)Cash over and short
• C)Operating cycle
• D)Petty cash

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Definitions:

Partner's Equity

The interest or ownership a partner has in a partnership, representing their claim on the assets after liabilities are settled.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the owner's claim on the company's resources.

Capital Account

An account showing the net worth of a business at a specific point in time, including the owner's investment and retained earnings.

Capital Balance

The amount of money or value of assets contributed by owners or partners to a business, reflecting their equity in the business.