Question:
Following are terms related to the balance sheet, which were discussed in Chapters 2 through 5. Match each definition with its related term by entering the appropriate letter in the space pro\ ided.
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Terms (1) Retained earnings (2) Current liabilities (3) Liquidity (4) Contra-asset account (5) Accumulated depreciation (6) Intangible assets (7) Other assets (8) Shares outstanding (9) Normal operating cycle (10) Book value (11) Capital in excess of par (12) Liabilities (13) Fixed assets (14) Shareholders' equity (15) Current assets (16) Assets (17) Long-term liabilities Definitions A. A miscellaneous category of assets. B. Amount of contributed capital less the par value of the stock. C. Total assets minus total liabilities. D. Nearness of assets to cash (in time). E. Assets expected to be collected in cash within one year or operating cycle, if longer. F. Same as carrying value; cost less accumulated depreciation to date. G. Accumulated earnings minus accumulated dividends. H. Asset offset account (subtracted from asset). 1. Balance of the Common Stock account divided by the par value per share. J. Assets that do not have physical substance. K. Probable future economic benefits owned by the entity from past transactions. L. Liabilities expected to be paid out of current assets normally within the next year. M. The average cash-to-cash time involved in the operations of the business. N. Sum of the annual depreciation expense on an asset from its acquisition to the current date. O. All liabilities not classified as current liabilities. P. Property, plant. and equipment. Q. Debts or obligations from past transactions to be paid with assets or services. R. None of the above.