Match Each Definition with the Correct Term Below

question 92

Multiple Choice

Match each definition with the correct term below.
-Permanent accounts

• 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:

Adjusting Entry

An accounting entry made in the books at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Legal Services

Professional services provided by lawyers or attorneys related to the law, including advice, representation, or legal documentation.

Supplies Expense

The cost incurred by a business for small items or materials that are used during the operation of the business.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to update the balances of certain accounts.