Match the Terms with the Definitions

question 47

Multiple Choice

Match the terms with the definitions.
-A temporary account used in the closing process to summarize the effects of all revenue and expense 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:

Profitable Credit Sales

Sales made on credit that generate a profit for the company, after accounting for the cost of goods sold and other expenses related to the sale.

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal, used in accounting to determine the value of an asset in the balance sheet.

Unrealized Loss

A decrease in the value of an investment or asset that has not been sold, hence the loss has not been realized.

Fair Value Adjustment

A correction made to the reported value of an asset or liability to align it with its market value.