Match the Following Terms with the Appropriate Definition

Short Answer

Match the following terms with the appropriate definition.
A. Plant assets
B. Owner's capital
C. Classified balance sheet
D. Intangible assets
E. Current ratio
F. Closing entries
G. Current liabilities
H. Long-term investments
I. Current assets
J. Unclassified balance sheet
_____ 1. The owner's claim on the assets of a company.
_____ 2. Tangible assets that are long-lived and used to produce or sell products or services.
_____ 3. 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.
_____ 4. 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.
_____ 5. Long-term resources that benefit business operations, usually lack physical form, and have uncertain benefits.
6. 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.
_____ 7. A balance sheet that organizes the assets and liabilities into important subgroups that provide more information to decision makers.
_____ 8. Obligations due to be paid or settled within one year or the operating cycle of a business, whichever is longer.
_____ 9. A balance sheet that broadly groups items into assets, liabilities and equity.
_____ 10. 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.