h each definition with its related term by selecting the appropriate term in the dropdown provided. There should be only one ition per term (that is, there are more definitions than terms). (Select "None of these are correct" if there is no term for the nition".) Definition X Term Common stock Assets = Liabilities + Stockholders' Equity Transaction Balance sheet Transaction Monetary unit assumption Assets = Liabilities + Stockholders' Equity Balance sheet Balance sheet Accounts receivable Debits X Economic resources to be used or turned into cash within one year. Reports assets, liabilities, and stockholders' equity. Business transactions are accounted for separately from the transactions of the owners. Increase assets; decrease liabilities and stockholders' equity. An exchange between an entity and other parties. The concept that businesses will operate into the foreseeable future. Decrease assets; increase liabilities and stockholders' equity. The concept that assets should be recorded at the amount paid on the exchange date. A standardized format used to accumulate data about each item reported on financial statements. Amounts owed from customers. The fundamental accounting model. Represents the shares issued at par value. The account that is credited when money is borrowed from a bank. The concept that states that accounting information should be measured and reported in the national monetary unit without adjustment for changes in purchasing power. Cumulative earnings of a company that are not distributed to the owners. X Common stock Debits Separate entity assumption Retained earnings Retained earnings Debits x X x Cumulative earnings of a company that are not distributed to the owners. Probable debts or obligations to be settled with assets or services. Every transaction has at least two effects on the accounting equation. Financing provided by owners and by business operations. The concept to exercise care not to overstate assets and revenues or understate liabilities and expenses. Useful information has predictive and feedback value. Relatively small amounts not likely to influence users' decisions are to be recorded in the most cost-beneficial way. Probable economic resources expected to be used or turned into cash beyond the next 12 months. Useful information should be complete, neutral, and free from error. A legal amount per share. X Common stock Transaction Faithful representation Accounts receivable Accounts receivable Monetary unit assumption Faithful representation Common stock x
