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

Exercise 36

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

_____The strategies, behaviors, and structures that support the fulfillment by the board of directors and management of an entity’s citizenship responsibilities and the achievement of its economic performance.

Step 1 of 2

A corporate firm is considered as strong and investable in the market not only due to its huge financial figures represented in financial statements, but also the strategies and fundamentals followed by the management of the company. The high corporate failures and crash downs like Enron increased the need for authorities to govern companies and reform measures