Consider the following accounting terms and definitions:
TERMS:
1. Accounting Equation
2. Asset
3. Balance Sheet
4. Expense
5. Income Statement
6. Liability
7. Net Income
8. Net Loss
9. Revenue
10. Statement of Cash Flows
11. Statement of Retained Earnings
DEFINITIONS:
A. An economic resource that is expected to be of benefit in the future
B. An economic obligation (a debt) payable to an individual or an organization outside the business
C. Excess of total expenses over total revenues
D. Excess of total revenues over total expenses
E. The basic tool of accounting, stated as Assets = Liabilities + Equity
F. Decrease in equity that occurs from using assets or increasing liabilities in the course of delivering goods or services to customers
G. Amounts earned by delivering goods or services to customers
H. Report of cash receipts and cash payments during a period
I. Report of an entity’s assets, liabilities, and equity as of a specific date
J. Report of an entity’s revenues, expenses and net income/net loss for the period
K. Report that shows the changes in retained earnings for a period of time
Requirement
1. Match the term to the correct definition.