E$2-1$

LO$2-1,2-2,2-3,$ ubrace$(\frac{?}{{?}_{\frac{?}{?}}\text{u}\text{b}\text{r}\text{a}\text{c}\text{e}})2-4$

Matching Definitions with Terms

Match each definition with its related term by entering the appropriate letter in the space provided. There should be only one definition per term $($that is$,$ there are more definitions than terms$).$

Term

Definition

$(1)$ Transaction

$(2)$ Going concern assumption

$(3)$ Balance sheet

Liabilities

Assets $=$ Liabilities $+$ Stockholders' Equity

Notes payable

$(7)$ Common stock

Historical cost principle

$)$ Account

$(10)$ Dual effects

$(11)$ Retained earnings

$(12)$ Current assets

$(13)$ Separate entity assumption

$(14)$ Par value

$(15)$ Debits

$(16)$ Accounts receivable

$(17)$ Monetary unit assumption

$(18)$ Stockholders' equity

A$.$ Economic resources to be used or turned into cash within one year.

B$.$ Reports assets, liabilities, and stockholders' equity.

C$.$ Business transactions are accounted for separately from the transactions of the owners.

D$.$ Increase assets; decrease liabilities and stockholders' equity.

E$.$ An exchange between an entity and one or more external parties to a business.

F$.$ The concept that businesses will operate into the foreseeable future.

G$.$ Decrease assets; increase liabilities and stockholders' equity.

H$.$ The concept that assets should be recorded at the cash$-$equivalent value on the exchange date.

I. A standardized format used to accumulate the dollar effect of transactions on each financial statement item.

J$.$ Amounts owed from customers.

K$.$ The accounting equation.

L$.$ Represents the shares issued at par value.

M$.$ The account that is credited when money is borrowed from a bank.

N$.$ Accounting information should be measured and reported in the national monetary unit without adjustment for changes in purchasing power.

O$.$ Cumulative earnings of a company that are not distributed to the owners.

P$.$ Measurable obligations resulting from a past transaction that are expected to be settled in the future by transferring assets or providing services.

Q$.$ Every transaction has at least two effects on the accounting equation.

R$.$ Financing provided by owners and by business operations.

S$.$ The concept to exercise care not to overstate assets and revenues or understate liabilities and expenses.

T$.$ Useful information has predictive and feedback value.

U$.$ Relatively small amounts not likely to influence users' decisions are to be recorded in the most cost$-$beneficial way.

V$.$ Measurable economic resources expected to be used or turned into cash beyond the next $12$ months.

W$.$ Useful information should be complete, neutral, and free from error.

X$.$ A legal amount per share.