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Accounting deals primarily with information regarding

02/05/2021 Client: muhammad11 Deadline: 2 Day

Name: Date: Matching Referring to the items listed below, place the appropriate letter next to the corresponding description. a. b. c. d. e. f. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Accounting equation Assets Corporation Dividends Liabilities Manufacturing company g. h. i. j. k. l. Merchandising company Net income Net loss Profitability Salaries expense Stockholders'equity / Total equities m. n. o. p. q. r. Ability to generate earnings. Cash paid to stockholders as distribution of income. Exchanges of goods and services that are objective and that occur at a An organization owned by stockholders and managed by officers who the owners. Land, buildings, cash, and other resources owned by the business. This type of business acquires materials and converts them into produ final customers. Creditor's equity or claims on assets. An organization owned by one individual who is solely responsible for The resulting figure when expenses exceed revenues. This type of business acquires goods and sells them in the same form Ability to pay debts as they become due. Stockholders' equity = assets - liabilities is one form of this equation. Shows cash inflows and cash outflows for a period of time. Equity ratio. a b c d e f g h i j k l m n o p q r tion. Service company Single proprietorship Solvency Stockholders' equity Transactions Statement of cash flows come. ective and that occur at an agreed-upon price. managed by officers who generally are people other than ned by the business. onverts them into products to sell to other companies or o is solely responsible for all debts of the business. venues. them in the same form to customers. e form of this equation. eriod of time. Completion and Exercises Fill in the blanks using the dropdown list. 1. 2. The __________ __________ (sometimes called the statement of fina __________ shows profitability. Accounting deals primarily with information regarding __________ ac 3. __________, __________, and __________ are the three forms of own 4. The balance sheet of a business corporation usually shows three class __________ __________; while the income statement shows two clas 5. In its most basic form, the accounting equation is simply __________ __________ __________. 6. Changes in the financial position of an organization are brought about accountants measure and record and which they call __________. 7. To show your understanding of the effects of each of the named trans business, fill in the blank in each column with either + (for increase), - a. b. c. d. e. f. g. 8. 9. 10. 11. Stockholders invested cash in the business Borrowed money from a bank Purchased equipment on credit Rendered services for cash Paid creditor in (c) Paid monthly rent Rendered services for which the customer promised to pay at a later date. Indicate, by letter, which of the above transactions would be reported __________. The inflows of assets for services rendered or goods delivered (as mea while the assets surrendered or consumed in this process are called __ The statement that shows the assets and equities of an entity as of a p The specific unit or organization for which accounting information is a valuation of assets in accounting is __________. 13. 14. The __________ concept in accounting refers to the fact that the amo determined in the exchange process. If expenses for a period exceed revenues for the same period, the ent An income statement is prepared for a __________, while a balance s 15. 16. Under the __________-__________ concept, the accountant assumes The __________ __________ is equal to stockholders' equity divided b 17. 18. The __________ __________ __________ __________ shows the cash Indicate the effect each of the following transactions has on the basic a. Decrease in an asset, decrease in a liability. b. Increase in an asset, increase in stockholders' equity. c. Increase in one asset, decrease in another asset. d. Increase in an asset, increase in a liability. e. None of the above. 1. Purchased equipment on account.

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