Exercise 3-15 (Static) Concepts; terminology (L03-2, 3-3, 3-4, 3-6) Listed below are several terms and phrases associated with the balance sheet and financial disclosures. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it b List A List B 1. Balance sheet a. Will be satisfied through the use of current assets. 2. Liquidity Items expected to be converted to cash or consumed within one year or the operating cycle, whichever is longer 3. Current assets c. The statements are presented fairly in conformity with GAAP. 4. Operating cycle d. An organized array of assets, liabilities, and equity 5. Current liabilities e. Important to a user in comparing financial information across companies. 6. Cash equivalent Scope limitation or a departure from GAAP. 7. Intangible asset 9. Recorded when an expense is incurred but not yet paid, 8. Working capital Refers to the ability of a company to convert its assets to cash to pay its current obligations 9. Accrued liabilities 1. Occurs after the fiscal year-end but before the statements are issued. 10 Summary of significant accounting policies Period of time from payment of cash to collection of cash, 11. Subsequent events k. One-month U.S. Treasury bil. 12 Unqualified opinion Current assets minus current liabilities 13 Qualified opinion m Lacks physical substance h