Question

Concepts; terminology

Listed below are several terms and phrases associated with the balance sheet and nancial disclosures. Pair each item
from List A (by letter) with the item from List B that is most appropriately associated with it.
List A List B
——1. Balance sheet a. Will be satised through the use of current
assets.
——2. Liquidity b. Items expected to be converted to cash or
consumed within
——3. Current assets one year or the operating cycle, whichever is
longer.
——4. Operating cycle c. The statements are presented fairly in
conformity with GAAP.
——5. Current liabilitiesd. An organized array of assets, liabilities, and
equity.
——6. Cash equivalent e. Important to a user in comparing nancial
information across
——7. Intangible asset companies.
——8. Working capital f. Scope limitation or a departure from GAAP. -
——9. Accrued
liabilities
g. Recorded when an expense is incurred but
not yet paid.
——10. Summary of
signicant
h. Relates to the amount of time before an asset
is converted to
accounting policies cash or a liability is paid.
——11. Subsequent
events
i. Occurs after the scal year-end but before the
statements
——12. Unqualied
opinion
are issued.
——13. Qualied
opinion
j. Cash to cash.
k. One-month U.S. Treasury bill.
.l Current assets minus current liabilities.
m. Lacks physical substance.

Answer 1

1. Balance sheet- An organized array of assets, liabilities, and equity.

2. Liquidity-Relates to the amount of time before an asset is converted to

accounting policies cash or a liability is paid.

3. Current assets -include cash and other assets that are expected to be converted to cash or consumed within one year, or within the normal operating cycle whichever is longer.

4. Operating cycle- Relates to the amount of time before an asset

is converted to accounting policies cash or a liability is paid.

5. Current liabilitiesd-Cash to cash

6. Cash equivalent -One-month U.S. Treasury bill.

7. Intangible asset companies-Lacks physical substance.

8. Working capital-Current assets minus current liabilities.

9. Accrued liabilities -Recorded when an expense is incurred but not yet paid.

10. Summary of signicant-. Important to a user in comparing nancial

information across

11. Subsequent events- Occurs after the scal year-end but before the

statements

12. Unqualied opinion are issued-The statements are presented fairly in

conformity with GAAP.

13. Qualied opinion-Scope limitation or a departure from GAAP.