Selected terms related to the statement of financial position, which were discussed in Chapters 2 through 5, are listed below. Match each definition with its related term by entering the appropriate letter in the space provided.
Terms
(1) Retained earnings
(2) Current liabilities
(3) Liquidity
(4) Contra- asset account
(5) Accumulated depreciation
(6) Intangible assets
(7) Other assets
(8) Shares outstanding
(9) Normal operating cycle
(10) Carrying amount
(11) Contributed surplus
(12) Liabilities
(13) Non- current assets
(14) Shareholders’ equity
(15) Current assets
(16) Assets
(17) Non- current liabilities
Definitions
A. A miscellaneous category of assets.
B. Amount of contributed capital for which shares were not issued.
C. Total assets minus total liabilities.
D. Nearness of assets to cash (in time).
E. Assets expected to be collected in cash within one year or the operating cycle, if longer.
F. Same as book value; cost less accumulated depreciation to date.
G. Accumulated earnings minus accumulated dividends.
H. Asset offset account (subtracted from asset).
I. Balance of the common shares account divided by the issue price per share.
J. Assets that do not have physical substance.
K. Probable future economic benefits owned by the entity from past transactions.
L. Liabilities expected to be paid out of current assets, normally within the next year.
M. The average cash- to- cash time involved in the operations of the business.
N. Sum of the annual depreciation expense on an asset from the date of its acquisition to the current date.
O. All liabilities not classified as current liabilities.
P. Property, plant, and equipment.
Q. Debts or obligations from past transactions to be paid with assets or services.
R. None of the above.