Match the Terms That Follow with the Correct Definitions

question 60

Multiple Choice

Match the terms that follow with the correct definitions.
-The account used to record amounts taken out of the business by the owner

• A)Interim statements
• B)Closing entries
• C)Expenses
• D)Real or permanent accounts
• E)Drawing account
• F)Income Summary
• G)Post-closing trial balance
• H)Accounting cycle
• I)Expense and revenue
• J)Temporary-equity accounts

Understand and calculate the times interest earned ratio and its significance in assessing financial health.

Analyze inventory management efficiency through the inventory turnover ratio and average days to sell inventory.

Evaluate company profitability and financial leverage through the return on equity (ROE) and debt-to-equity ratio.

Understand the importance of liquidity ratios and their assessment of short-term financial strength.

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Definitions:

Specifically Branded Product

A specifically branded product is a particular item that is marketed and sold under a unique brand name, distinguishing it from competitors and generic alternatives.

Banker

is a professional who works in the banking sector, involved in managing monetary transactions, and providing financial advice to clients.

Lender

An entity or individual that provides funds to borrowers with the expectation of being repaid with interest.

Personally Liable

The legal responsibility of an individual to settle debt or legal obligations from their personal assets.