Question
Match the terms in column A with the statements in column B. Write down the letter of the correct answer. (eg 5. A) (12) 1.
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Match the terms in column A with the statements in column B. Write down the letter of the correct answer. (eg 5. A) (12)
1. Assets | A | The residual claim that the owner(s) has on the assets of the organisation after all the liabilities have been settled. |
2. Non-current assets | B | Debts that are payable within 1 year of the balance sheet date. |
3. Current assets | C | The resources that are controlled by an enterprise from which economic benefits will be derived either now or in the future. |
4. Equity | D | The items that the business owes. |
5. Liabilities | E | The various ways by which an enterprise obtains its funds in order to meet its capital needs. |
6. Non-current liabilities | F | The use of capital to acquire non-current assets to be put to productive use as well the acquisition of current assets. |
7. Current liabilities | G | The measure of the ability of an enterprise to have sufficient cash on hand to meet its obligations at all times. |
8. Investment | H | The ability of an enterprise to be able to repay its debts and satisfy any claims against it. |
9. Financing | I | Assets that have a useful life of more than one year. |
10. Liquidity | J | Debts that are payable after more than one year from the balance sheet date. |
11. Solvency | K | The effectiveness with which an enterprise has employed both the total assets and the net assets (equity). |
12. Profitability | L | Assets that are expected to be turned into cash within a year. |
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