Another Term for Earnings Power Is

question 70

Multiple Choice

Another term for earnings power is:

• A) nonrecurrent revenue.
• B) nonrecurrent gains.
• C) sustainable earnings.
• D) net change in equity.

Comprehend the structure and components of the Balance Sheet and Income Statement.

Analyze the effects of business transactions and events on owner's equity.

Apprehend the significance of account numbers in organizing financial information.

Understand the security measures like passwords in QuickBooks and their importance in safeguarding financial data.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure a company's bookkeeping system is mathematically correct.

Accounting Cycle

The comprehensive process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation on the financial statements.

Adjusted Trial Balance

A version of the trial balance that reflects account balances after adjustments are made for accruals, deferrals, and errors.

Unadjusted Trial Balance

A preliminary list of all accounts in the general ledger with their balances to check the equality of debits and credits before adjustments.