Match the Terms Below with the Correct Definitions

question 1

Multiple Choice

Match the terms below with the correct definitions.
-The ability to convert assets quickly into cash

• A)Property and equipment
• B)Reversing entries
• C)Gross profit
• D)Current ratio
• E)Working capital
• F)Net income or net loss
• G)Net sales
• H)Income from operations
• I)Long-term liabilities
• J)Liquidity

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Definitions:

Account Type

Refers to classifications made for various financial transactions in accounting, such as assets, liabilities, equity, revenue, and expenses.

Debit And Credit Effects

The accounting actions that increase or decrease accounts in the double-entry bookkeeping system, where debits are entries on the left side and credits are entries on the right.

Normal Account Balance

The usual or expected balance that an account possesses, which can be a debit for assets and expenses, or a credit for liabilities, equity, and revenue.

Journal Entries

These are records that note the details of financial transactions in accounting, following the double-entry bookkeeping system.