Question

Question: Match each of the numbered descriptions 1 through 5 with the term or phrase it best reflects. Indicate your answer by writing the letter A through H for the term or phrase in the blank provided. A. Audit B. GAAP C. Ethics D. Tax accounting E. SEC F. Public accountants G. Net income H. IASB

1. An examination of an organization’s accounting system and its records that adds credibility to financial statements.

2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues.

3. An accounting area that includes planning future transactions to minimize taxes paid.

4. Accounting professionals who provide services to many clients.

5. Principles that determine whether an action is right or wrong.

Short answer

Net income is the revenue minus expenses and the correct phrases and terms are matched.

Step-by-step solution

Definition of net income

Net income is defined as the income of the business after deducting all the expenses from the revenues of the company.

Matching the correct terms or phrases

Description	Terms or phrases
1.	A. Audit
2.	G. Net Income
3.	D. Tax accounting
4.	F. Public Accountants
5.	C. Ethics