Match the Following Terms with Their Correct Definition

question 233

Multiple Choice

Match the following terms with their correct definition.
-consideration of an expenditure of $100 for a savings of $75

• A)account
• B)accounting cycle
• C)chart of accounts
• D)cost vs. benefit
• E)credit
• F)debit
• G)event
• H)general ledger
• I)journal
• J)trial balance

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Definitions:

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits and credits, to verify that the total debits equal total credits.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profit.

Ledger

A book or collection of accounts in which transactions are recorded, categorized, and summarized.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership value in the company.