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Match the Following Definitions with the Appropriate Term

Question 68

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Match the following definitions with the appropriate term

Premises:
The owner's claim on the assets of a company.
Tangible assets that are long-lived and used to produce or sell products or services.
Cash and other resources that are expected to be sold, collected, or used within one year or the company's operating cycle, whichever is longer.
Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account.
Long-term resources that benefit business operations, usually lack physical form, and have uncertain benefits.
Assets that are held for more than the longer of one year or the operating cycle of the company and are not used in operations.
A balance sheet that organizes the assets and liabilities into important subgroups that provide more information to decision makers.
Obligations due to be paid or settled within one year or the operating cycle of a business, whichever is longer.
A balance sheet that broadly groups items into assets, liabilities and equity.
A ratio that is used to help evaluate a company's ability to pay its short-term obligations, calculated by dividing current assets by current liabilities.
Responses:
Plant assets
Owner's capital
Classified balance sheet
Intangible assets
Current ratio
Closing entries
Current liabilities
Long-term investments
Current assets
Unclassified balance sheet

Correct Answer:

The owner's claim on the assets of a company.
Tangible assets that are long-lived and used to produce or sell products or services.
Cash and other resources that are expected to be sold, collected, or used within one year or the company's operating cycle, whichever is longer.
Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account.
Long-term resources that benefit business operations, usually lack physical form, and have uncertain benefits.
Assets that are held for more than the longer of one year or the operating cycle of the company and are not used in operations.
A balance sheet that organizes the assets and liabilities into important subgroups that provide more information to decision makers.
Obligations due to be paid or settled within one year or the operating cycle of a business, whichever is longer.
A balance sheet that broadly groups items into assets, liabilities and equity.
A ratio that is used to help evaluate a company's ability to pay its short-term obligations, calculated by dividing current assets by current liabilities.
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