2. The following is a list of selected users of accounting information. Match the user to the following information needs. Place the number of the user in the blank to the right of each need. 1. Production Managers Judge the soundness of a customer before making sales on credit 2. Lenders Measuring risk and return of loans. 3. Suppliers Assessing the risk and return of acquiring shares. 4. Employees Monitor costs and ensure quality. 5. Shareholders Assessing employment opportunities. 3. Match the following definitions (a - h) with terms below. Place the letter of the best definition in the blank space to the right of each term. a. The accounting principle that requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange. b. A principle that requires the information in financial statements to be supported by independent unbiased evidence. c. Gross increase in equity from a company's earnings activities. d. A principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold. e. Resources owned or controlled by a company that are expected to yield future benefits. f. Financial statement that reports the changes in equity for the reporting period; including increases such as owner investment and net income and for decreases such as owner withdrawals or net loss. g. Assets an owner takes from the company for personal use. h. Another term for equity. 1. Net assets 2. Owner withdrawal 3. Objectivity principle 4. Assets 5. Revenues 6. Cost principle 7. Statement of owner's equity 8. Going-concern principle Illlllll 4. Match each of the following items with the financial statement where each item would most likely appear. Place letter a -d in the blank space to the right of each item. An item may appear on more than one statement. a. Income statement c. Balance sheet b. Statement of owner's equity d. Statement of cash flows 1. Cash from investing activities. 2. Equity 3. Revenues. 4. Liabilities 5. Cash from operating activities. 6. Withdrawals. 7. Costs and expenses. 8. Assets