Listed Below Are Ten Terms Describing the Purposes of the Balance

Essay

Listed below are ten terms describing the purposes of the balance sheet. Following the list is a series of descriptive phrases.
a. financial position
b. balance sheet
c. income statement
d. liquidity
e. financial flexibility
f. operating capability
g. assets
h. acquisition cost
i. control
j. recognition

1.Process of recording and reporting an element in the financial statements

2.Economic resources

3.Ability of a company to use its financial resources to adapt to change

4.Economic resources, economic obligations, equity, and their relationship to each other at a point in time

5.Amount of time until an asset is converted into cash or a liability is paid

6.The ability to deny or regulate the use of an asset

7.The financial position of the company as reported on a specific date

8.Ability of a company to maintain a given physical level of operations

9.Is measured in terms of changes in assets and liabilities

10.Historical cost of an asset



Required:
Match each term with its descriptive phrase by placing the appropriate letter in the space provided.