Match the Terms Below with the Correct Definitions

question 14

Multiple Choice

Match the terms below with the correct definitions.
-Sales minus the sum of sales returns and allowances and sales discounts

• 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:

Warranty

A guarantee provided by a seller that the product or service offered meets certain criteria and that any defects will be fixed or compensated.

Liability

A legal obligation or responsibility; it can refer to financial debt or other forms of legal responsibilities individuals or entities may have towards others.

Guarantee

A legal promise to ensure the fulfillment of an obligation or repayment of a loan in case the original party fails to do so.

Terminate

Refers to the action of bringing something or an agreement to an end before its natural conclusion.