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:

Accounting System

A structured process of collecting, recording, summarizing, and interpreting financial information of a business.

Adjusting Entries

At the close of a financial period, journal entries are created to distribute earnings and costs to the period in which they genuinely took place.

Adjusted Trial Balance

is a listing of all company accounts that will appear on the financial statements after making end-of-period adjustments.

Reversing Entry

An accounting entry made at the beginning of an accounting period to reverse or cancel out a previous adjusting entry.