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
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)
5. Stockholders’ equity
6. Net loss
7. Sole proprietorship
8. Basic accounting equation
11. Sarbanes-Oxley Act (SOX)
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.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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a. 8 Assets = Liabilities + Stockholders Equity. b. 1 An individual who has met certain criteri…View the full answer
The accounting equation is a formula that shows the sum of a company\\\'s liabilities and shareholders\\\' equity are equal to its total assets (Assets = Liabilities + Equity). The clear-cut relationship between a company\\\'s liabilities, assets, and equity is the backbone of double-entry bookkeeping.
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