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Match Each Term to Its Definition

Question 276

Matching

Match each term to its definition

Premises:

Responses:

Revenues

Resources owned or controlled by a company that are expected to yield future benefits.

Going-concern principle

A principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold.

Statement of retained earnings

A financial statement that reports the changes in retained earnings over the reporting period; including increases from net income and for decreases such as dividends or net loss.

Net assets

Another term for equity.

Dividends

A principle that requires the information in financial statements to be supported by independent unbiased evidence.

Objectivity principle

The accounting principle that requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange.

Cost principle

The distribution of assets to stockholders.

Assets

Increases in retained earnings from a company's earnings activities.

Premises:

Revenues

Going-concern principle

Statement of retained earnings

Net assets

Dividends

Objectivity principle

Cost principle

Assets

Responses:

Resources owned or controlled by a company that are expected to yield future benefits.

A principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold.

A financial statement that reports the changes in retained earnings over the reporting period; including increases from net income and for decreases such as dividends or net loss.

Another term for equity.

A principle that requires the information in financial statements to be supported by independent unbiased evidence.

The accounting principle that requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange.

The distribution of assets to stockholders.

Increases in retained earnings from a company's earnings activities.

Correct Answer:

Premises:

Responses:

Revenues

Going-concern principle

Statement of retained earnings

Net assets