Matching
Match the following definitions with terms 1 through 8.Place the letter that identifies the best definition to the term.
Premises:
Assets
Cost principle
Objectivity principle
Going-concern principle
Revenues
Net assets
Owner withdrawal
Statement of owner's equity.
Responses:
Resources owned or controlled by a company that are expected to yield future benefits.
Another term for equity.
Gross increase in equity from a company's earnings activities.
The accounting principle that requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange.
A principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold.
A financial statement that reports the changes in equity over the reporting period; including increases such as owner investment and net income and for decreases such as owner withdrawals or net loss.
A principle that requires the information in financial statements to be supported by independent unbiased evidence.
Assets an owner takes from the company for personal use.
Correct Answer:
Premises:
Responses:
Assets
Cost principle
Objectivity principle
Going-concern principle
Revenues
Net assets
Owner withdrawal
Statement of owner's equity.
Premises:
Assets
Cost principle
Objectivity principle
Going-concern principle
Revenues
Net assets
Owner withdrawal
Statement of owner's equity.
Responses:
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