Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 46

Following are a number of the key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–8). Note that not all key terms and concepts will be used.

a. Explanatory notes to financial statements	h. Prospectus
b. Five-year summary	i. Purchase accounting
c. Significant accounting policies	j. Corporate governance
d. Stock option plan	k. Contingencies and commitments
e. Accounting change	l. Business segment
f. Business combination	m. Management’s statement of responsibility
g. Proxy

_____An authorization given by a stockholder to another person to vote the shares owned by the stockholder.

Step 1 of 2

Shareholders have the right to attend the general meetings of the company and cast their vote on the matters raised so as to pass a resolution in favor or in against of the given agenda. The majority is mostly counted on the basis of members present and voting that is if a member is absent, his vote lapses.