Match Each Definition That Follows with the Term A-H It

question 95

Multiple Choice

Match each definition that follows with the term a-h it defines.
-occurs when a company abandons a segment

• A)discontinued operations
• B)extraordinary items
• C)change from one generally accepted accounting principle to another
• D)horizontal analysis
• E)vertical analysis
• F)common-sized financial statements
• G)current position analysis
• H)profitability analysis

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Definitions:

Capital Lease

A lease agreement that grants the lessee ownership rights of the asset at the end of the lease term.

Gross Investment

The total amount spent on acquiring new assets and maintaining or upgrading existing ones, without deducting for depreciation.

Lessor's Balance Sheet

A financial statement detailing the assets, liabilities, and equity of a lessor under lease transactions.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle.