Question

QUESTION 15 Match the terms with the definitions. The period of time required to purchase supplies and a. account form of balance sheet services and convert them back into cash. b. accounting cycle Prepared after posting the closing entries to prove the c classified balance sheet equality of the debit and credit balances in the general d. closing process ledger accounts e. current assets A balance sheet with separate categories for current assets; property, plant, and equipment, current f. current liabilities liabilities; and long-term liabilities. g. Income Summary A balance sheet in which the assets are on the left and h. long-term liabilities the liabilities and the owner's equity sections are on i. operating cycle the right 1. permanent accounts Accounts that accumulate information across k. post-closing trial balance accounting periods; all accounts reported on the 1. property, plant, and equipment balance sheet. m. report form of balance sheet A balance sheet in which the liabilities and the owner's equity sections are shown below the assets section. n. temporary accounts The steps involved in accounting for all of the business activities during an accounting period. Assets that are expected to serve the business for many years. Obligations that are due within either one year or the normal operating cycle of the business, whichever is longer, and that are to be paid out of current assets. Cash and assets that will be converted into cash or consumed within either one year or the normal operating cycle of the business, whichever is longer.

Answer 1

The period of time required to purchase supplies and services and convert them back into cash: Operating cycle

Prepared after posting the closing entries to prove the equality of the debit and credit balances in the general ledger accounts: Post-closing trial balance

A balance sheet with separate categories for current assets; property, plant and equipment; current liabilities; and long-term liabilities: Classified balance sheet

A balance sheet in which the assets are on the left and the liabilities and the owner’s equity sections are on the right: Account form of balance sheet

Accounts that accumulate information across accounting periods; all accounts reported on the balance sheet: Permanent accounts

A balance sheet in which the liabilities and the owner’s equity sections are shown below the assets section: Report from of balance sheet

The steps involved in accounting for all of the business activities during an accounting period: Accounting cycle

Assets that are expected to serve the business for many years: Property, plant, and equipment

Obligations that are due within either one year or the normal operating cycle of the business, whichever is longer, and that are to be paid out of current assets: Current liabilities

Cash and assets that will be converted into cash or consumed within either one year or the normal operating cycle of the business, whichever is longer: Current assets

Obligations that are not expected to be paid within a year and do not require the use of current assets: Long-term liabilities

A temporary account used in the closing process to summarize the effects of all revenue and expense accounts: Income summary

Accounts that do not accumulate information across accounting periods but are closed, such as the drawing account and all income statement accounts: Temporary accounts

The process of giving zero balances to the temporary accounts so that they can accumulate information for the next accounting period: Closing process