Match the Term to the Appropriate Definition

question 118

Multiple Choice

Match the term to the appropriate definition.(There are more definitions than terms. )
-Unit of Measure Assumption

• A)A procedure by which independent evaluators assess the accounting procedures and financial reports of a company.
• B)An example of external users of financial statements.
• C)Activities directly related to running the business to earn a profit.
• D)When a company acquires money from investors.
• E)A financial statement that summarizes a company's past and current cash situation.
• F)Transactions with lenders (borrowing and repaying cash)and stockholders (selling company stock and paying dividends).
• G)The total amount of profits that are kept by the company.
• H)The idea that the financial statements of a company include the results of only that company's business activities.
• I)The idea that a company should report its financial data in the relevant currency.
• J)Borrowing money from lenders.
• K)A financial statement showing a company's assets,liabilities and stockholders' equity.
• L)A financial statement that shows a company's revenues and expenses.
• M)An example of an internal user of financial statements.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and practices used in the United States to ensure financial statements are consistent and transparent.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial reporting.

Earnings Per Share

A financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock, measuring its profitability on a per-share basis.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines for preparing financial statements.