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Item1

Item 1 5 points

Required

Match the terms (identified as a through p) with the definitions and phrases (marked 1 through 16). For example the term "a. Assets" matches with definition "15. Equal to liabilities plus stockholders' equity."

1. The economic benefit (increase in assets) gained by providing goods or services to customers.
2. Investors who purchase common stock.
3. The economic sacrifice (decrease in assets) incurred in the process of providing goods or services to customers.
4. Created when a company borrows money from a bank.
5. Assets minus liabilities and retained earnings.
6. Occurs when expenses exceed revenues during the year.
7. Individuals or institutions that have loaned goods or services to a business.
8. Primary components of financial statements including assets, liabilities, stockholders' equity, common stock, revenue, expenses, distributions, and net income.
9. Occurs when revenue exceed expenses during the year.
10. Assets minus liabilities.
11. The section of the statement of cash flows that reflects cash paid for expenses.
12. The section of the statement of cash flows that reflects cash collected from the issue of stock.
13. The section of the statement of cash flows that reflects cash paid to purchase land.
14. The item shown on the statement of changes in stockholders' equity that represents a transfer of wealth from a business to its owners.
15. Equal to liabilities plus stockholders' equity.
16. A stockholders' equity account that contains the amount of net income earned minus dividends paid since the inception of the business.

a. asset

b. common stock

c. creditors

d. dividend

e. elements - 8

f. expense

g. financing activity

h. investing activity

i. liability

j. net income

k. net loss

l. operating activity

m. retained earning - 16

n. revenue

o. stockholders

p. stockholders equity