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

Exercise 54

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 1–10). Note that not all key terms and concepts will be used.

a. Percentage of completion method	k. Dilution
b. Physical inventory	l. Basic earnings per share
c. Expenses	m. Diluted earnings per share
d. Cost of goods sold	n. Extraordinary item
e. Matching principle	o. Discontinued operations
f. Inventory cost-flow assumption	p. Net income attributable to noncontrolling
g. Inventory shrinkage	interest
h. Perpetual system	q. Single-step format
i. Periodic system	r. Multiple-step format
j. Cost of goods sold model	s. Statement of cash flows

_____The reduction in earnings per share of common stock that can occur if convertible securities are actually converted to common stock.