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Match the Correct Definitions Below with the Terms

Question 107

Matching

Match the correct definitions below with the terms.

Premises:
Long-lived assets
Once-a-year accounting entries recorded on the first day of the fiscal period
The ability to convert assets quickly into cash
The firm's excess of its current assets over its current liabilities
Excess of net sales over the cost of goods sold
Excess of gross profit over operating expenses
Sales minus the sum of sales returns and allowances and sales discounts
Portrays a firm's ability to pay its short-term debts
The classification that helps to identify which of the firm's debts are paid over a comparatively long period
The final figure on the income statement
Responses:
Property and equipment
Reversing entries
Gross profit
Current ratio
Working capital
Net income or net loss
Net sales
Income from operations
Long-term liabilities
Liquidity

Correct Answer:

Long-lived assets
Once-a-year accounting entries recorded on the first day of the fiscal period
The ability to convert assets quickly into cash
The firm's excess of its current assets over its current liabilities
Excess of net sales over the cost of goods sold
Excess of gross profit over operating expenses
Sales minus the sum of sales returns and allowances and sales discounts
Portrays a firm's ability to pay its short-term debts
The classification that helps to identify which of the firm's debts are paid over a comparatively long period
The final figure on the income statement
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