Match the Terms with the Definitions

question 73

Multiple Choice

Match the terms with the definitions.
-A balance sheet with separate categories for current assets; property,plant,and equipment; current liabilities; and long-term liabilities.

• 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:

Consideration

The value, usually in the form of money, goods, or services, exchanged in a contract between parties.

Contractual Capacity

The legal ability of a party to enter into a contract, including being of legal age and possessing a sound mind.

Binding Contract

An agreement between two or more parties that is legally enforceable.

Preprinted Terms

Agreements or forms that have standard conditions and text already printed on them before they are used, requiring only specific details to be added.