Exercise 12-1A Match terms with their definitions (L012-1, 12-2, 12-3, 12-4, 12-5, 12-6) Match the following descriptions or examples with the item in the drop-down list that best fits. Items Descriptions a: A company's ability to pay its current liabilities. b. Accounting choices that result in reporting lower income, lower assets, and higher liabilities. c. Accounting choices that result in reporting higher income, higher assets, and lower liabilities The ability of reported earnings to reflect the company's true earnings as well as the usefulness of reported earnings to help investors predict future earnings. e. A tool to analyze trends in financial statement data for a single company over time. The sale or disposal of a significant component of a company's operations. g. A means to express each item in a financial statement as a percentage of a base amount. h. A company's ability to pay its long-term liabilities Aggressive accounting practices Conservative accounting practices Discontinued operation Horizontal analysis Match the following descriptions or examples with the item in the drop-down list that best fits. Items Descriptions a. A company's ability to pay its current liabilities. b. Accounting choices that result in reporting lower income, lower assets, and higher liabilities. c. Accounting choices that result in reporting higher income, higher assets, and lower liabilities The ability of reported earings to reflect the company's true earnings as well as the usefulness of reported earnings to help investors predict future earnings.. e. A tool to analyze trends in financial statement data for a single company over time. f. The sale or disposal of a significant component of a company's operations. 9. A means to express each item in a financial statement as a percentage of a base amount. h. A company's ability to pay its long-term liabilities, Horizontal analysis Liquidity Quality of earnings Solvency. Vertical analysis