E $3-15$

Concepts;

terminology

LO$3-2$ through

LO$3-4,$ LO$3-6$

Listed below are several terms and phrases associated with the balance sheet and financial disclosures. Pair each

item from List A $($by letter$)$ with the item from List B that is most appropriately associated with it$.$

List A

List B

Balance sheet

$-$

Liquidity

Current assets $-$

Operating cycle $-$

Current liabilities $-$

Cash equivalent $-$

Intangible asset $-$

Working capital

Accrued liabilities

Summary of significant accounting policies

Subsequent events

Sustainability disclosures $-$

Unqualified opinion

Qualified opinion

a$.$ Will be satisfied through the use of current

assets.

b$.$ Items expected to be converted to cash or

consumed within one year or the operating cycle,

whichever is longer.

c$.$ The statements are presented fairly in conformity

with GAAP.

d$.$ An organized array of assets, liabilities, and equity.

e$.$ Important to a user in comparing financial

information across companies.

f$.$ Scope limitation or a departure from GAAP.

Recorded when an expense is incurred but not yet

paid.

h$.$ Refers to the ability of a company to convert its

assets to cash to pay its current obligations.

i$.$ Occurs after the fiscal year$-$end but before the

statements are issued.

j$.$ Period of time from payment of cash to collection

of cash.

K$.$ One$-$month U$.$S$.$ Treasury bill.

X$.$ Current assets minus current liabilities.

m$.$ Lacks physical substance.

n$.$ Information about environmental, social, and

governance factors related to company operations.