Match the Terms with the Definitions

question 25

Multiple Choice

Match the terms with the definitions.

-A formal written promise to pay a supplier or lender a specified sum of money at a definite future time.

• A) account
• B) accounts payable
• C) accounts receivable
• D) accounting equation
• E) assets
• F) balance sheet
• G) business entity
• H) business entity concept
• I) business transaction
• J) drawing
• K) expenses
• L) income statement
• M) liability
• N) net income
• O) net loss
• P) notes payable
• Q) owner's equity
• R) revenues
• S) statement of owner's equity

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Definitions:

Past Event

A situation or occurrence that has already taken place.

Relevant

Pertaining to decision-making, it refers to information or costs that will change as a result of a decision, thereby affecting the outcome.

Total Cost

The sum of all expenses associated with the production or provision of goods and services, including fixed and variable costs.

Per Unit

A term referring to the cost, price, or measurement associated with a single unit of a product or service.