Matching
Match each term with its descriptive statement by placing the appropriate letter in the space provided.
Premises:
Process of recording and reporting an element in the financial statements.
Economic resources less economic obligations.
Ability of a company to use its financial resources to adapt to change.
Economic resources, economic obligations, equity, and their relationship to each other at a point in time.
Amount of time until an asset is converted into cash or a liability is paid.
A quantitative measure of the physical productive capacity of an entity.
Major classes and amounts of assets.
Ability of a company to maintain a given physical level of operations.
Major classes and amounts of liabilities and equity.
Monetary value of the net assets.
Responses:
financial position
resource structure
financial structure
liquidity
financial flexibility
operating capability
net assets
financial capital
physical capital
recognition
Correct Answer:
Premises:
Responses:
Process of recording and reporting an element in the financial statements.
Economic resources less economic obligations.
Ability of a company to use its financial resources to adapt to change.
Economic resources, economic obligations, equity, and their relationship to each other at a point in time.
Amount of time until an asset is converted into cash or a liability is paid.
A quantitative measure of the physical productive capacity of an entity.
Major classes and amounts of assets.
Ability of a company to maintain a given physical level of operations.
Major classes and amounts of liabilities and equity.
Monetary value of the net assets.
Premises:
Process of recording and reporting an element in the financial statements.
Economic resources less economic obligations.
Ability of a company to use its financial resources to adapt to change.
Economic resources, economic obligations, equity, and their relationship to each other at a point in time.
Amount of time until an asset is converted into cash or a liability is paid.
A quantitative measure of the physical productive capacity of an entity.
Major classes and amounts of assets.
Ability of a company to maintain a given physical level of operations.
Major classes and amounts of liabilities and equity.
Monetary value of the net assets.
Responses:
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