Complete the Following Using the Terms Listed

question 9

Multiple Choice

Complete the following using the terms listed.
-The basic relationship that states assets equal liabilities plus owners' equity is called the _____.

• A)certified public accountant
• B)International Financial Reporting Standards
• C)asset
• D)liability
• E)Owners' equity
• F)accounting equation
• G)balance sheet
• H)income statement
• I)Sarbanes-Oxley Act (SOX)
• J)accrual accounting
• K)open book management
• L)budget
• M)generally accepted accounting principles (GAAP)
• N)Financial Accounting Standards Board (FASB)
• O)profitability ratios
• P)International Accounting Standards Committee (IASC)
• Q)Leverage ratios
• R)management accountant

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Definitions:

Plant Assets

Long-term tangible assets used in the production process of a business, including machinery, buildings, and equipment.

General Journal Entries

Accounting records that are used to document business transactions in the general ledger in chronological order.

Transactions

Transactions are actions involving the transfer of goods, services, or funds between two or more parties.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual installments.