Match Each Term with the Appropriate Definition

question 85

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Trend Analysis

• 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:

Sales Tax

A government-imposed tax on sales of goods and services, paid by the purchaser and collected by the seller.

Credit Customer

A customer who purchases goods or services on credit, paying at a later date rather than at the time of sale.

Payment Terms

The conditions under which a seller will complete a sale. Typically, these terms specify the period allowed to a buyer to pay off the amount due and may include cash discounts for timely payment.

Sales Tax

A tax paid to a governing body for the sales of certain goods and services, usually calculated as a percentage of the retail sale price.