The following list of terms or phrases are discussed in this chapter. 

1. Certifi ed public accountant (CPA) 

2. Management discussion and analysis (MD&A) 

3. Revenue

4. Dividends 

5. Stockholders’ equity 

6. Net loss 

7. Sole proprietorship 

8. Basic accounting equation 

9. Expenses 

10. Liabilities 

11. Sarbanes-Oxley Act (SOX) 

Instructions

Match each term or phrase to its description below. 

a. ______ Assets = Liabilities + Stockholders’ Equity. 

b. ______ An individual who has met certain criteria and is thus allowed to perform audits of corporations. c. ______ Payments of cash from a corporation to its stockholders. 

d. ______ The cost of assets consumed or services used in the process of generating revenues. 

e. ______ Amounts owed to creditors in the form of debts and other obligations. 

f. ______ A section of the annual report that presents management’s views on the company’s ability to pay near-term obligations, its ability to fund operations and expansion, and its results of operations. 

g. ______ The amount by which expenses exceed revenues. 

h. ______ The increase in assets or decrease in liabilities resulting from the sale of goods or the performance of services in the normal course of business. 

i. ______ Regulations passed by Congress to reduce unethical corporate behavior. 

j. ______ A business owned by one person. 

k. ______ The owners’ claim to assets.