Match the Term to the Appropriate Definition

question 181

Multiple Choice

Match the term to the appropriate definition.(There are more definitions than terms. )
-Income Statement

• 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:

Decision-making Process

The series of steps taken by individuals or groups to identify and evaluate options in order to choose the best course of action.

Recognition

The act of acknowledging or formally accepting the existence, validity, or legality of something.

Problem

A situation, question, or matter in need of a solution, typically requiring thought, effort, or creativity to resolve.

Directing

Directing involves guiding, leading, and managing individuals or teams to accomplish organizational goals.