Match the terms below with the correct definitions.
-Working paper that is used to record adjustments and gather information to prepare the financial statements
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 work sheet is a working paper used to record adjustments and gather information to prepare the financial statements.

Answer: H 
 Adjusting refers to the process of making entries in the books to reflect the true financial position of a company as of the end of the accounting period.

Answer: I 
 Depreciation refers to the process of allocating the cost of a tangible asset over its useful life.

The other terms are defined as follows:

A) Fiscal year - a 12-month period that a company or organization uses for accounting purposes

B) Trade-in value - the value that a dealer will pay for a used car or other asset when it is traded in as part of a new purchase

C) Accrued wages - wages that have been earned by employees but not yet paid by the employer

E) Contra account - an account that is used to offset another account on the balance sheet

F) Accounting cycle - the process of recording, classifying, and summarizing financial transactions to prepare financial statements

G) Mixed accounts - accounts that contain both debit and credit entries, which can make them difficult to analyze and reconcile.

Match the Terms Below with the Correct Definitions