Match the term with its definition.
-A firm's income statement, balance sheets, and statements of cash flows

Question

Quizplus · Accepted Answer

Financial statements are a firm's income statement, balance sheets, and statements of cash flows.

Answer: G
 Inventory is the value of products held for sale in a company's warehouses or stores.

Answer: H
 Liquidity refers to a company's ability to meet its short-term obligations.

Answer: A
 Accrual-basis accounting is a method of accounting that recognizes revenue when earned and expenses when incurred, regardless of when cash is received or paid.

Answer: E
 Depreciation expense is the portion of the cost of a long-lived asset that is allocated to expense in a given period.

Answer: D
 Depreciable assets are long-lived assets that lose value over time and are recorded on a company's balance sheet.

Answer: C
 Cash-basis accounting is a method of accounting that recognizes revenue and expenses when cash is received or paid.

Answer: I
 Operating profit margin is a measure of a company's profitability that shows how much profit is generated from each dollar of revenue before deducting interest and taxes.

Answer: J
 Return on assets is a measure of a company's profitability that shows how much profit is generated from each dollar of assets.

Answer: K
 Return on equity is a measure of a company's profitability that shows how much profit is generated from each dollar of equity.

Match the Term with Its Definition