Match the terms below with the correct definitions.
-Twelve consecutive months used by a business as its annual accounting period
A)Fiscal year
B)Trade-in value
C)Accrued wages
D)Work sheet
E)Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation

Question

Quizplus · Accepted Answer

A fiscal year is a consecutive 12-month period that a business chooses to use as its annual accounting period.

Answer: B 
 Trade-in value refers to the value of an old asset that is being traded in for a new one.

Answer: C 
 Accrued wages are wages that have been earned by employees but have not yet been paid out.

Answer: D 
 A worksheet is a document used by accountants to organize and summarize data during the accounting cycle.

Answer: E 
 A contra account is an account that is used to offset another account.

Answer: F 
 The accounting cycle is a series of steps that accountants follow to properly record business transactions and prepare financial statements.

Answer: G 
 Mixed accounts are accounts that have both a debit and credit balance.

Answer: H 
 Adjusting entries are made at the end of an accounting period to ensure that financial statements accurately reflect the company's financial position.

Answer: I 
 Depreciation is the gradual loss of an asset's value over time due to wear and tear, obsolescence, or other factors.

Match the Terms Below with the Correct Definitions