Match These Terms with Their Definitions

question 99

Multiple Choice

Match these terms with their definitions.
-debt that is secured by real estate

• A)callable bonds
• B)finance lease
• C)convertible bonds
• D)debenture bonds
• E)junk bonds
• F)mortgage bonds
• G)notes payable
• H)operating lease
• I)secured bonds

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Definitions:

Income Summary

An account in the closing process that summarizes revenues and expenses for a period, transferring the net result to owner's equity.

Retained Earnings

The portion of a company's profits not distributed as dividends but reinvested in the business or kept as reserve.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Permanent Accounts

Balance sheet accounts that carry their ending balances over into the next accounting period, such as assets, liabilities, and equity accounts.