Chapter 1
Accounting and Business
MATCHING
1. Match the following with the descriptions below.
A. Assets
B. Liability
C. Net Assets
D. Owners’ Equity
E. Revenue
F. Expense
G. Net Income
_____ 1. Assets minus liabilities
_____ 2. The obligation to transfer economic resources to suppliers of goods
and
services at some point in the future.
_____ 3. A company's total revenues less its total expenses for a period of
time.
_____ 4. An amount incurred from using resources or services in an effort to
generate
revenues.
, _____ 5. The rights to use resources that have expected future economic
benefit.
_____ 6. An amount earned from rendering services or transferring resources
to
customers.
_____ 7. Represents the claims on the business to transfer the residual
interest (net assets
of the business) to the owners.
Answer: 1. C 2. B 3. G 4. F 5. A 6. E 7. D
2. Match the following balance sheet classifications with the accounts listed
below.
A. Current Assets
B. Investments
C. Property Plant and Equipment
D. Intangible Assets
E. Current Liabilities
F. Long-Term Liabilities
G. Stockholders’ Equity
H. Does not appear on the Balance Sheet
_____ 1. Accounts Receivable
_____ 2. Note Payable due in 60 days
_____ 3. Cash
_____ 4. Advertising Expense
, _____ 5. Inventory
_____ 6. Interest Payable
_____ 7. Equipment
_____ 8. Patent
_____ 9. Land
_____ 10. Accounts Payable
_____ 11. Note Payable (Due in 10 Years)
_____ 12. Investment in Nike Common Stock
_____ 13. Retained Earnings
_____ 14. Note Receivable from customer due in 5 years
_____ 15. Prepaid Rent
Answers: 1. A 2. E 3. A 4. H 5. A 6. E 7. C 8. D 9. C 10. E 11. F
12. B 13. G 14. B 15. A
3. Match the following balance sheet classifications with the accounts listed below.
A. Current Assets
B. Investments
C. Property Plant and Equipment
D. Intangible Assets
E. Current Liabilities
F. Long-Term Liabilities
G. Stockholders’ Equity
H. Does not appear on the Balance Sheet
, _____ 1. Salary Expense
_____ 2. Note Receivable due in 60 days
_____ 3. Accounts Payable
_____ 4. Cash
_____ 5. Building
_____ 6. Interest Payable
_____ 7. 1000 shares of Microsoft Stock
_____ 8. Land
_____ 9. Patent
_____ 10. Interest Receivable
_____ 11. Note Payable (Due in 10 Years)
_____ 12. Common Stock
_____ 13. Inventory
_____ 14. Note Receivable from customer due in 5 years
_____ 15. Interest Expense
Answers: 1. H 2. A 3. E 4. A 5. C 6. E 7. B 8. C 9. D 10. A 11. F
12. G 13. A 14. B 15. H
4. Match the following with the descriptions below.
A. Return on Sales Ratio
Accounting and Business
MATCHING
1. Match the following with the descriptions below.
A. Assets
B. Liability
C. Net Assets
D. Owners’ Equity
E. Revenue
F. Expense
G. Net Income
_____ 1. Assets minus liabilities
_____ 2. The obligation to transfer economic resources to suppliers of goods
and
services at some point in the future.
_____ 3. A company's total revenues less its total expenses for a period of
time.
_____ 4. An amount incurred from using resources or services in an effort to
generate
revenues.
, _____ 5. The rights to use resources that have expected future economic
benefit.
_____ 6. An amount earned from rendering services or transferring resources
to
customers.
_____ 7. Represents the claims on the business to transfer the residual
interest (net assets
of the business) to the owners.
Answer: 1. C 2. B 3. G 4. F 5. A 6. E 7. D
2. Match the following balance sheet classifications with the accounts listed
below.
A. Current Assets
B. Investments
C. Property Plant and Equipment
D. Intangible Assets
E. Current Liabilities
F. Long-Term Liabilities
G. Stockholders’ Equity
H. Does not appear on the Balance Sheet
_____ 1. Accounts Receivable
_____ 2. Note Payable due in 60 days
_____ 3. Cash
_____ 4. Advertising Expense
, _____ 5. Inventory
_____ 6. Interest Payable
_____ 7. Equipment
_____ 8. Patent
_____ 9. Land
_____ 10. Accounts Payable
_____ 11. Note Payable (Due in 10 Years)
_____ 12. Investment in Nike Common Stock
_____ 13. Retained Earnings
_____ 14. Note Receivable from customer due in 5 years
_____ 15. Prepaid Rent
Answers: 1. A 2. E 3. A 4. H 5. A 6. E 7. C 8. D 9. C 10. E 11. F
12. B 13. G 14. B 15. A
3. Match the following balance sheet classifications with the accounts listed below.
A. Current Assets
B. Investments
C. Property Plant and Equipment
D. Intangible Assets
E. Current Liabilities
F. Long-Term Liabilities
G. Stockholders’ Equity
H. Does not appear on the Balance Sheet
, _____ 1. Salary Expense
_____ 2. Note Receivable due in 60 days
_____ 3. Accounts Payable
_____ 4. Cash
_____ 5. Building
_____ 6. Interest Payable
_____ 7. 1000 shares of Microsoft Stock
_____ 8. Land
_____ 9. Patent
_____ 10. Interest Receivable
_____ 11. Note Payable (Due in 10 Years)
_____ 12. Common Stock
_____ 13. Inventory
_____ 14. Note Receivable from customer due in 5 years
_____ 15. Interest Expense
Answers: 1. H 2. A 3. E 4. A 5. C 6. E 7. B 8. C 9. D 10. A 11. F
12. G 13. A 14. B 15. H
4. Match the following with the descriptions below.
A. Return on Sales Ratio
