Match Each Definition with the Correct Term Below

question 19

Multiple Choice

Match each definition with the correct term below.
-Deferred expense

• A)Used to determine that all temporary accounts have zero balances.
• B)The postponement of the recognition of an expense already paid.
• C)Accounts that begin each accounting period with a zero balance.
• D)Increases in stockholders' equity resulting from selling goods.
• E)Revenue that is received in advance of goods delivery or service performance.
• F)Accounts that carry their end-of-period balances into the next accounting period.
• G)The recognition of a revenue or an expense that has arisen but not been recorded during the accounting period.
• H)Decreases in stockholders' equity resulting from the cost of selling goods.
• I)Used after making adjusting journal entries to ensure that debits equal credits.
• J)Revenues that a company has earned by performing a service or delivering goods but for which no entry

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Definitions:

Statement Of Cash Flows

A financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquid assets available for running its operations.

Discontinued Operations

Parts of a company's core business or units that have been sold, disposed of, or ceased operations, which are reported separately in financial statements.

Interim Report

A financial statement that reports a company's financial performance for a period shorter than a fiscal year, often quarterly.