Match the Terms with the Definitions

question 4

Multiple Choice

Match the terms with the definitions.
-A method of accounting under which revenues are recorded when earned and expenses are recorded when incurred.

• A)accrual basis of accounting
• B)combination journal
• C)Description column
• D)General Credit column
• E)General Debit column
• F)modified cash basis
• G)Posting Reference column
• H)special columns

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Definitions:

Amortization Schedule

A table detailing each periodic payment on an amortizing loan, including breakdowns of principal and interest.

Amortizes Loans

Loans for which periodic payments are made that include both interest and principal, gradually reducing the outstanding balance.

Monthly Payments

Regular payments made each month by a borrower to a lender, often as part of a loan repayment plan.

Loan Terms

Loan terms are the specific conditions and details agreed upon by the lender and borrower, including interest rate, repayment schedule, and duration of the loan.