Match Each Definition with the Correct Term Below

question 37

Multiple Choice

Match each definition with the correct term below.
-Estimated liabilities

• A)Definite debts or obligations whose exact dollar amount cannot be known until a later date.
• B)Liabilities due beyond one year or beyond the normal operating cycle.
• C)Unsecured loans that are sold to the public ,usually through professionally managed investment firms.
• D)The cost of using money for a specific period.
• E)A potential liability that depends on a future event arising out of a past transaction.
• F)Debts and obligations that a company expects to satisfy within one year or within its normal operating cycle.
• G)The interest cost for two or more periods when,after each period,the interest earned in that period is added to the amount on which interest is calculated in future periods.
• H)A legal obligation that does not meet the technical requirements for recognition as a liability.
• I)A person who is not an employee of the organization and so is not accounted for under the payroll system.
• J)The interest cost for one or more periods when the principal sum stays the same from period to period.

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Definitions:

Flexible Budget

A budget model that can adapt to different levels of operational activity or production output.

Planning Budget

A financial plan that estimates future revenues, expenses, and other financial needs for a specific period.

Customers Served

The total number of clients or customers that a business or facility has provided services or goods to within a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels within a business.