PART A Accounting Vocabulary (13 points) Directions: Using terms from the following list, complete the sentences below. Write the letter of the term you have chosen in the space provided. Section Break A. balance sheet B. current assets C current liabilities D. current ratio E. financial statements F. .Column Break income statement G. Income Statement section of the work sheet H. Column Break liquidity ratio 1. net income 1. profitability ratios K. report form L. return on sales M. Column Break statement of changes in owner's equity N. working capital 0. The source of information for completing the income statement is the D 1. The financial statement that reports the net income or net loss for the fiscal period it covers is the 2. The classifications of balance sheet accounts are shown one under the other in 3. Reports prepared to summarize the changes resulting from business transactions that have occurred during a fiscal period are called B 4. A financial statement that is prepared to summarize the effects on the capital account of the various business transactions that occurred during the fiscal period is called and 5. occurs when total revenue is greater than total expenses. El 6. The amount by which current assets exceed current liabilities is known as all 7. A financial statement that is a report of the final balances in all asset liability and owner's equity accounts at the end of the fiscal period is the 8. The is the relationship between current assets and current liabilities. 9. The ratio is used to examine the portion of each sales dollar that represents profit. 10.A is a measure of a business's ability to pay its current debts as they become due and to provide for unexpected needs of cash. 11. are the debts of the business that must be paid within the next accounting period. , 12 are assets used up or converted to cash during the normal operating cycle of the business. 13. A is used to kvaluate the earnings performance of the business during the accounting period