Match the Terms with the Definitions

question 63

Multiple Choice

Match the terms with the definitions.

-An unwritten promise to pay a supplier for assets purchased or services rendered.

• 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:

Net Income

The net income a company achieves once all costs and taxes are subtracted from its total revenues.

Cash Flow

The net amount of cash and cash-equivalents moving into and out of a business, crucial for assessing liquidity, flexibility, and overall financial performance.

Net Capital Losses

The result of selling a capital asset for less than its purchase price, which can be used to offset capital gains for tax purposes.

Corporations

Business entities that are legally recognized as individual entities, separate and distinct from their owners.