Question

E1-19 Using accounting vocabulary Consider the following accounting terms and definitions, and match each term to the definition: Learnin 1. Accounting equation a. An economic resource that is expected to be of benefit in the future 2. Asset b. Debts that are owed to creditors 3. Balance sheet c. Excess of total expenses over total revenues 4. Expense d. Excess of total revenues over total expenses 5. Income statement 6. Liability e. The basic tool of accounting, stated as Assets = Liabilities + Equity 7. Net income f. Decreases in equity that occur in the course of selling goods or services 8. Net loss 9. Revenue g. Increases in equity that occur in the course of selling goods or services 10. Statement of cash flows h. Reports on a business's cash receipts and cash payments during a period 11. Statement of retained earnings i. Reports on an entity's assets, liabilities, and stockholders' equity as of a specific date j. Reports on an entity's revenues, expenses, and net income or loss for the period k. Reports how the company's retained earnings balance changed from the beginning to the end of the period Learning Object E1-20 Using the accounting equation Compute the missing amount in the accounting equation for each entity from the financial information presented: o Bte S 3
e1-19

Answer 1

Ans. E 1 - 19
No.	Items			Explanations
1	Accounting equation		e	The basic tool of accounting, stated as Assets = liabilities + Equity
2	Asset		a	An economic resource that is expected to be of benefit in the future
3	Balance sheet		i	Reports on an entity's assets, liabilities and stockholder's equity as of a specific date.
4	Expense		f	Decrease in equity that occur in the course of selling goods of services.
5	Income statement		j	Reports on an entity's revenues, expenses and income or loss for the period.
6	Liability		b	Debts that are owed to creditors.
7	Net income		d	Excess of total revenues over total expenses.
8	Net loss		c	Excess of total expenses over total revenues.
9	Revenue		g	Increase in equity that occur in the course of selling goods of services.
10	Statement of cash flows		h	Reports on a business's cash receipts and cash payments during a period.
11	Statement of retained earnings		k	Reports how the company's retained earnings balance changed from the beginning to the end of the period.