Match the Terms That Follow with the Correct Definitions

question 24

Multiple Choice

Match the terms that follow with the correct definitions.
-Account that is used to assist in closing temporary-equity accounts

• 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

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Definitions:

Credit

A financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, generally with interest.

Effective Annual Interest Rate

The interest rate on a loan or financial product restated from the nominal rate as an annual rate that takes into account compounding over a given period.

Terms Of Sale

The conditions agreed upon between a buyer and a seller regarding the purchase of goods, including payment and delivery.

Credit

The ability of a borrower to obtain goods or services before payment, based on the trust that payment will be made in the future.