Match the Terms with the Definitions

question 26

Multiple Choice

Match the terms with the definitions.
-Prepared after posting the closing entries to prove the equality of the debit and credit balances in the general ledger accounts.

• A)account form of balance sheet
• B)accounting cycle
• C)classified balance sheet
• D)closing process
• E)current assets
• F)current liabilities
• G)Income Summary
• H)long-term liabilities
• I)operating cycle
• J)permanent accounts
• K)post-closing trial balance
• L)property, plant, and equipment
• M)report form of balance sheet
• N)temporary accounts

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Definitions:

Beginning Inventory

The value of goods available for sale at the start of an accounting period, essential for calculating cost of goods sold.

Gross Profit

The financial gain made after subtracting the cost of goods sold from the total sales revenue.

Net Sales

Net sales is the revenue from sales of goods or services after subtracting returns, allowances for damaged or missing goods, and discounts.

Inventory Available

The total quantity of goods a company has on hand for sale at any given time, including both finished goods and goods in production.