, Accounting 1 of 10 pages
Circle the letter of the Definition that corresponds to the displayed Term.
1. current liabilities
A: total par or stated value of the shares issued; companies must disclose the par value per
B: obligations that are reasonably expected to be liquidated using current assets or the creation
C: the amount restricted by bond indentures or other loan agreements
D: those assets not meeting the definition of current assets; being held longer than a year or the
2. external
A: investments in others
B: debt securities bought and held primarily for sale soon to generate a return. These are
C: a measure of a firm’s ability to meet its currently maturing obligations (liquidity).
D: a lessee's right to use an asset over the duration of the lease
3. cash
A: currency and demand deposits at a financial institution. Examples of demand deposits are
B: probable future sacrifices of economic benefits arising from present obligations of a particular
to transfer assets or provide services to other entities in the future as a result of past
C: reports cash flow from (1) operations, (2) investing transactions, and (3) financing
D: physical property such as land, buildings, machinery, furniture, tools, right-of-use assets
4. current cash debt coverage
A: all significant financing and investing activities must be disclosed in the statement or notes,
B: probable future sacrifices of economic benefits arising from present obligations of a particular
to transfer assets or provide services to other entities in the future as a result of past
C: indicates whether the company can pay off its current liabilities from its operations each year
D: involve liability and owners' or stockholders equity items.
5. internal
A: investing in itself
B: total par or stated value of the shares issued; companies must disclose the par value per
C: if a company invests funds into a three-month CD, those funds would be included in the cash
D: Relates to the debt/equity mix in the capital structure
6. debt securities
A: involve the cash effects of transactions that enter into the determination of net income
B: investments in bonds or notes of other companies or governmental entities; separated into
C: the corporation’s accumulated, undistributed earnings
D: time it takes to convert a non-cash asset into cash
GoldenChapter – Stuvia 2024/2025 Edition
Circle the letter of the Definition that corresponds to the displayed Term.
1. current liabilities
A: total par or stated value of the shares issued; companies must disclose the par value per
B: obligations that are reasonably expected to be liquidated using current assets or the creation
C: the amount restricted by bond indentures or other loan agreements
D: those assets not meeting the definition of current assets; being held longer than a year or the
2. external
A: investments in others
B: debt securities bought and held primarily for sale soon to generate a return. These are
C: a measure of a firm’s ability to meet its currently maturing obligations (liquidity).
D: a lessee's right to use an asset over the duration of the lease
3. cash
A: currency and demand deposits at a financial institution. Examples of demand deposits are
B: probable future sacrifices of economic benefits arising from present obligations of a particular
to transfer assets or provide services to other entities in the future as a result of past
C: reports cash flow from (1) operations, (2) investing transactions, and (3) financing
D: physical property such as land, buildings, machinery, furniture, tools, right-of-use assets
4. current cash debt coverage
A: all significant financing and investing activities must be disclosed in the statement or notes,
B: probable future sacrifices of economic benefits arising from present obligations of a particular
to transfer assets or provide services to other entities in the future as a result of past
C: indicates whether the company can pay off its current liabilities from its operations each year
D: involve liability and owners' or stockholders equity items.
5. internal
A: investing in itself
B: total par or stated value of the shares issued; companies must disclose the par value per
C: if a company invests funds into a three-month CD, those funds would be included in the cash
D: Relates to the debt/equity mix in the capital structure
6. debt securities
A: involve the cash effects of transactions that enter into the determination of net income
B: investments in bonds or notes of other companies or governmental entities; separated into
C: the corporation’s accumulated, undistributed earnings
D: time it takes to convert a non-cash asset into cash
GoldenChapter – Stuvia 2024/2025 Edition
