Match Each Definition with the Correct Term Below

question 198

Multiple Choice

Match each definition with the correct term below.
-Fair value

• A)A journal entry that involves more than two accounts.
• B)A list of account numbers with corresponding account titles.
• C)The difficulty of deciding when a business transaction should be recorded.
• D)The difference in dollars between the total debit footing and the total credit footing.
• E)The chronological accounting record sometimes known as the book of original entry.
• F)The basic storage units for accounting data.
• G)The item that is prepared at the end of the accounting period to test if total debits equals total credits.
• H)The process of transferring information from the journal to the ledger.
• I)The exchange price of an actual or potential business transaction.
• J)The practice of recording transactions at the exchange price at the point of recognition.

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Definitions:

Cash Equivalent

Short-term, highly liquid investment assets that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Money Market

A segment of the financial market where short-term funds are borrowed and lent, typically involving instruments with high liquidity and short maturities.

Treasury Bill

A short-term government security issued at a discount from the face value and paying no interest, maturing usually in one year or less.

Fraud Triangle

A model that describes the three elements present when an individual commits fraud: opportunity, pressure, and rationalization.