Matching Definitions with Balance Sheet-Related TermsFollowing are terms related to the ba...

Terms

Definitions

(1) Capital in excess of par

A. Nearness of assets to cash (in time).

(2) Assets

B. Liabilities expected to be paid out of current assets norm ally within the next year.

(3) Retained earnings

C. All liabilities not classified as current liabilities.

(4) Book value

D. Total asset s minus tot al liabilities.

(5) Other assets

E. Probable future economic benefits owned by the entity from past transactions.

(6) Shares out standing

F. Debts or obligations from past transactions to be paid with assets or services.

(7) Shareholders’ equity

G. Assets expected to be collected in cash within one year or the operating cycle, if longer.

(8) Liquidity

H. Assets that do not have physical substance.

(9) Normal operating cycle

I. Balance of the Common Stock account divided by the par value per share.

(10) Current assets

J. A miscellaneous category of asset s.

(11) Current liabilities

K. Sum of the annual depreciation expense on an asset from its acquisition to the current date.

(12) Long-term liabilities

L. Asset offset account (subtracted from asset).

(13) Fixed assets

M. Accumulated earnings minus accumulated dividends.

(14) Liabilities

N. Property, plan t, and equipment.

(15) Contra-asset account

O. Same as carrying value: cost less accumulated depreciation to date.

(16) Accumulated depreciation

P. Amount of contributed capital less the pa r value of the stock.

(17) Intangible assets

Q. The average cash-to-cash time involved in the

R. None of the above.