Match the Terms with the Definitions

question 107

Multiple Choice

Match the terms with the definitions.
-A depreciation method in which the depreciable cost is divided by the estimated useful life.

• A)Adjusted Trial Balance columns
• B)Adjusting entries
• C)Balance Sheet columns
• D)book value
• E)contra-asset
• F)depreciable cost
• G)depreciation
• H)fiscal year
• I)historical cost principle
• J)Income Statement columns
• K)market value
• L)matching principle
• M)plant assets
• N)salvage value
• O)straight-line method
• P)undepreciated cost
• Q)useful life
• R)work sheet

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Definitions:

Balance Sheet Approach

A method in accounting that focuses on valuing all assets and liabilities listed on the balance sheet at their current market values to provide a snapshot of a company's financial condition at a specific point in time.

Direct Write-off Approach

An accounting method for dealing with bad debts where specific accounts receivable are written off against income at the time they are determined to be uncollectible.

Normal Balance

The side of an account that is increased, which for assets, expenses, and dividends is the debit side, and for liabilities, equity, and revenue is the credit side.

Financial Statement

A documented account detailing the commercial operations and fiscal outcomes of an enterprise.