1. 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.