part 2 test a\nselect the one term that best fits each definition.\ndefinition\n1. the amount of total…

part 2 test a\nselect the one term that best fits each definition.\ndefinition\n1. the amount of total current assets less total current liabilities\n2. a federal tax paid for hospital insurance\n3. the subsidiary ledger containing vendor accounts\n4. the operating revenue remaining after cost of merchandise sold has been deducted.\n5. an account in a general ledger that summarizes all accounts in a subsidiary ledger\n6. a ratio that measures the relationship of quick assets to current liabilities\n7. a comparison of one item on a financial statement with the same item on a previous periods financial statement.\n8. an accounting form that summarizes the earnings, deductions, and net pay of all employees for one pay period.\n9. total liabilities divided by total assets.\n10. the original price of all merchandise sold during a fiscal period.\n11. credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customers account payable to the vendor

part 2 test a\nselect the one term that best fits each definition.\ndefinition\n1. the amount of total current assets less total current liabilities\n2. a federal tax paid for hospital insurance\n3. the subsidiary ledger containing vendor accounts\n4. the operating revenue remaining after cost of merchandise sold has been deducted.\n5. an account in a general ledger that summarizes all accounts in a subsidiary ledger\n6. a ratio that measures the relationship of quick assets to current liabilities\n7. a comparison of one item on a financial statement with the same item on a previous periods financial statement.\n8. an accounting form that summarizes the earnings, deductions, and net pay of all employees for one pay period.\n9. total liabilities divided by total assets.\n10. the original price of all merchandise sold during a fiscal period.\n11. credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customers account payable to the vendor

Answer

Brief Explanations:

  1. Working capital is calculated as total current assets minus total current liabilities.
  2. Medicare tax is a federal tax for hospital insurance.
  3. Accounts payable ledger contains vendor accounts.
  4. Gross profit is operating revenue after cost of merchandise sold is deducted.
  5. A control account in general ledger summarizes subsidiary - ledger accounts.
  6. The quick ratio measures quick assets to current liabilities relationship.
  7. Horizontal analysis compares an item on financial statements over periods.
  8. Payroll register summarizes employee earnings, deductions and net pay.
  9. Debt - to - assets ratio is total liabilities divided by total assets.
  10. Total cost of merchandise sold is the original price of sold goods in a fiscal period.
  11. Purchase allowance is credit for non - returned merchandise price part, reducing accounts payable.

Answer:

  1. Working capital
  2. Medicare tax
  3. Accounts payable ledger
  4. Gross profit
  5. Control account
  6. Quick ratio
  7. Horizontal analysis
  8. Payroll register
  9. Debt - to - assets ratio
  10. Total cost of merchandise sold
  11. Purchase allowance