Listed Below Are Five Terms Followed by a List of Phrases

question 134

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Notes receivable

• A)Goods to be sold in the ordinary course of business
• B)Insurance premiums paid in advance.
• C)Due from customers in the ordinary course of business
• D)Formal agreement that specifies customer's payment terms.
• E)Liquid investments not classified as cash equivalents.

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Definitions:

Interest Annually

The amount of interest earned or paid over a one-year period.

Debt to Assets Ratio

A financial ratio that indicates the percentage of a company's assets financed by debt.

Current Assets

Resources anticipated to be turned into cash, disposed of, or utilized within a year or during the operational cycle, whichever period extends further.

Total Liabilities

The combined amount of obligations a company owes to external parties, including loans, accounts payable, mortgages, deferred revenues, and accrued expenses.