Match Each of the Following Terms with Their Correct Description

question 85

Multiple Choice

Match each of the following terms with their correct description from the items listed below.
-Gross margin - period costs

• A)Gross Margin
• B)Selling Expenses
• C)Sales Revenue
• D)Cost of Goods Sold
• E)Operating Income

---

Definitions:

Statement of Financial Position

A financial document presenting an entity's assets, liabilities, and equity at a specific date, more commonly known as a balance sheet.

Prepayment Accounts

Accounts that reflect payments made in advance for expenses that will be incurred in future periods, treated as assets until used.

Supplies Expense

Costs associated with the consumable items that are used in the daily operations of a business and not intended for resale.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for a more accurate financial report.