E$2-1($Static$)$ Matching Terms with Definitions $[$LO $2-1,$ LO $2-2,$ LO $2-3]$

Required:

Match each term with its related definition by selecting the appropriate letter from the definition list that follows. There should be only one definition per term $($that is$,$ there are more definitions than terms$).$

Definition

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

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

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

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

E$.$ An exchange or event that has a direct and measurable financial effect.

F$.$ Accounts for a business separate from its owners.

G$.$ The principle that assets should be recorded at their original cost to the company.

H$.$ A standardized format used to accumulate data about each item reported on financial statements.

I. The basic accounting equation.

J$.$ The idea that accounts can both increase and decrease.

K$.$ The account credited when money is borrowed from a bank using a promissory note.

L$.$ Cumulative earnings of a company that have not yet been distributed to the owners.

M$.$ Every transaction has at least two effects.

N$.$ Amounts presently owed by the business.