Match Each of the Following Items with the Appropriate Definitions

question 42

Multiple Choice

Match each of the following items with the appropriate definitions.
-A financial statement that reports the cash inflows and cash outflows for an accounting period,and classifies those cash flows as operating,investing,or financing activities.

• A)Indirect method
• B)Direct method
• C)Statement of cash flows
• D)Financing activities
• E)Operating activities
• F)Investing activities

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Definitions:

Profits

The financial gain made in a transaction or operation, calculated as the difference between revenue and costs.

Compounded Annually

This refers to the process where interest is added to the principal sum, so that from that moment on, the interest that has been added also earns interest, being calculated and added to the account annually.

Simple Interest

Interest calculated on the principal amount of a loan or deposit, without compounding over time.

Savings Account

A deposit account held at a bank that provides interest on the funds deposited.