Match the terms (identified as a through g) with the definitions and phrases (marked 1 through 7).
Question:
Match the terms (identified as a through g) with the definitions and phrases (marked 1 through 7). For example the term “a. Assets” matches with definition 7. Economic resources that will be used by a business to produce revenue.
a. Assets
b. Common Stock
c. Creditors
d. Liability
e. Retained Earnings
f. Stockholders
g. Stockholders’ Equity
1. Individuals or institutions that have contributed assets or services to a business in exchange for an ownership interest in the business.
2. Common Stock + Retained Earnings.
3. Certificates that evidence ownership in a company.
4. Assets – Liabilities – Common Stock.
5. An obligation to pay cash in the future.
6. Individuals or institutions that have loaned goods or services to a business.
7. Economic resources that will be used by a business to produce revenue.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds