Solved

Match Each of the Following Terms with the Most Appropriate

Question 34

Matching

Match each of the following terms with the most appropriate definition.

Premises:

Responses:

Managerial accounting

Defining the idea, goals and actions of an organization

Events

Area of accounting aimed at serving the decision making needs of internal users

Risk

Costs of assets or services used to earn revenues

Planning

Those happenings that affect an entity's accounting equation and can be reliably measured

Liabilities

Area of accounting aimed at serving external users

Expenses

Creditor's claims on a company's assets

Revenues

Amount received from selling products and services

Return on Assets

A financial ratio useful in evaluating management, analyzing and forecasting profits and planning activities

Net income

The excess of revenue over expenses

Financial accounting

The uncertainty about the expected return to be earned

Premises:

Managerial accounting

Events

Risk

Planning

Liabilities

Expenses

Revenues

Return on Assets

Net income

Financial accounting

Responses:

Defining the idea, goals and actions of an organization

Area of accounting aimed at serving the decision making needs of internal users

Costs of assets or services used to earn revenues

Those happenings that affect an entity's accounting equation and can be reliably measured

Area of accounting aimed at serving external users

Creditor's claims on a company's assets

Amount received from selling products and services

A financial ratio useful in evaluating management, analyzing and forecasting profits and planning activities

The excess of revenue over expenses

The uncertainty about the expected return to be earned

Correct Answer:

Premises:

Responses:

Managerial accounting

Events

Risk

Planning

Liabilities

Expenses

Revenues

Return on Assets

Net income

Financial accounting