uestion 6 Chapter 3: The Balance Sheet - match the term to the correct definition. A resource the firm owns. A. long-term liabilities A company's debts or legal obligations to creditors. B. retained earnings The residual claim of a firm held by the firm's owners. C. liquidity The ease with which an asset can be converted to cash. D. liabilities Values used on the balance sheet, determined by accounting rules, that might differ E. assets from actual market value. F. fixed assets Items such as cash, accounts receivable and inventory that can be expected to be converted to cash in under one year. G. shareholder's equity Items such as buildings, machinery, land and patents not expected to be converted H. current liabilities to cash in under one year. 1. book value Items such as accounts payable and accruals that are expected to be paid in under one year. J. current assets K. statement value Cumulative earnings not yet paid out as dividends but used by the firm to pay its debt or re-invest in the firm. Moving to the next quortion prevents changes to this