Match the Following Terms with the Appropriate Definition

question 27

Multiple Choice

Match the following terms with the appropriate definition.
-A balance sheet that broadly groups items into assets,liabilities and equity.

• A)Stockholders' equity
• B)Unclassified balance sheet
• C)Long-term investments
• D)Current liabilities
• E)Closing entries
• F)Current ratio
• G)Plant assets
• H)Current assets
• I)Intangible assets
• J)Classified balance sheet

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Definitions:

Earned

Refers to income or revenue that a company has generated from its operations or business activities.

Adjustments

Records documented in the financial accounts at the end of a fiscal period to distribute revenues and expenses to the timeframe in which they were truly incurred.

Asset

An economic resource owned or controlled by a company that is expected to provide future benefits.

Liability Account

An accounting record that tracks obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.