Match Each Term with the Appropriate Definition

question 43

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Full Disclosure Principle

• A)Also known as time-series analysis.
• B)The ability of a company to meet its short-run financial obligations.
• C)The standard that companies should present all relevant information needed to interpret a company's financial position and performance.
• D)A measure of current earnings performance.
• E)Measures that relate financial variables reported in one or more of the financial statements from the same year.
• F)A type of analysis that focuses on relationships within a single financial statement.
• G)A result from comparing a company's results to other companies in the industry.
• H)The standard that revenue should be recorded when earned,provided payment is reasonably expected.
• I)A measure of long-run survivability.
• J)The standard that expenses should be recognized when incurred.
• K)The characteristic that financial information needs to be valuable to decision makers.
• L)The standard that takes for granted a company's near term financial survival.

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Definitions:

Normal Credit Balance

The usual balance side of an account that increases its value, typically used for liabilities, revenues, and equity accounts.

Withdrawals

Money taken out from a business by its owner(s) for personal use, reducing the owner's equity in the business.

Assets

Economic resources owned by a business or individual that are expected to benefit future operations.

Expenses

Financial outlays or obligations incurred by a company as part of its operational activities, leading to a reduction in owners' equity.