Match the following terms with the appropriate definition.

Question

A. An account linked with another account and having an opposite normal balance.
B. A useful measure of a company's operating results determined by dividing net income by net sales.
C. Any length of time that an organization's activities are divided into and reported by financial statements.
D. A listing of accounts and balances prepared after adjustments are recorded and posted to the ledger.
E. A 12-month period, used by companies with seasonal variation that ends when a company's sales activities are at their lowest point.
F. Costs that are incurred in a period but are both unpaid and unrecorded, requiring an adjustment at the end of the period.
G. Items paid for in advance of receiving their benefits; recorded as an asset when purchased and expensed when used.
H. A listing of accounts and balances prepared after external transactions are recorded but before adjustments are recorded.
I. A balance sheet that lists items vertically in the order of assets, liabilities and equity.
J. A journal entry made at the end of an accounting period to reflect a transaction or event that is not yet recorded; affects one or more income statement account and one or more balance sheet account, but never cash.

Answer 1

A. Contra account
B. Profit margin
C. Accounting period
D. Adjusted trial balance
E. Natural business year
F. Accrued expenses
G. Prepaid expenses
H. Unadjusted trial balance
I. Report form balance sheet
J. Adjusting entry