Match the Term and the Definition

question 118

Multiple Choice

Match the term and the definition.There are more definitions than terms.

-1 Contra-account

• A)When revenue minus expenses is a negative number.
• B)Adds new values into the balance sheet and income statement accounts.
• C)Also known as transportation and storage expense.
• D)An income account that is only open long enough to record one transaction.
• E)The level of profit before considering income tax.
• F)A journal entry that eliminates an account from the chart of accounts.
• G)Lists the balances of all accounts to check that revenues equal expenses.
• H)The amount at which an asset or liability is reported in the financial statements.
• I)An account that is paired with another account whose book value it reduces.
• J)Lists the balances of all accounts to check that debits equal credits.
• K)The number of years that a company has to pay back its loans and other financing.
• L)A journal entry that transfers net income or loss to the retained earnings account.
• M)Converts some of an asset's or liability's book value into an expense or revenue.
• N)When a company lowers the price of a product.
• O)An account that must have a zero balance after closing entries have been made.
• P)The level of revenue a company has before it pays administrative expenses.

---

Definitions:

Consolidated Income Statement

Consolidated Income Statement is a financial statement that aggregates the financial performance of a company and its subsidiaries, presenting the overall income, expenses, and net income.

Gain on Sale

Gain on Sale is the financial profit made from selling an asset for more than its purchase price or book value, excluding the costs associated with the sale.

Consolidated Income Statement

A financial statement that summarizes the financial performance of an entire group of companies, including all subsidiaries, for a given period.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income, which can vary depending on the level of income earned and jurisdiction.