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Match Each of the Most Appropriate Definition with the Following

Question 245

Matching

Match each of the most appropriate definition with the following terms.

Premises:

Responses:

The uncertainty about the return to be earned.

Liabilities

Resources such as cash that an owner takes from the company for personal use.

Expenses

Resources such as cash that an owner puts into the company.

Accounting equation

Expresses the relation of assets, liabilities and equity in a company, comparing the resources the company owns to the sources of funds to acquire the resources.

Assets

Resources a company owns or controls that are expected to yield future benefit.

Risk

Decreases in equity from costs of providing products or services to customers.

Return on assets

Creditor's claims on a company's assets.

Owner withdrawals

A financial ratio stated as income divided by assets invested.

Owner capital

Premises:

The uncertainty about the return to be earned.

Resources such as cash that an owner takes from the company for personal use.

Resources such as cash that an owner puts into the company.

Expresses the relation of assets, liabilities and equity in a company, comparing the resources the company owns to the sources of funds to acquire the resources.

Resources a company owns or controls that are expected to yield future benefit.

Decreases in equity from costs of providing products or services to customers.

Creditor's claims on a company's assets.

A financial ratio stated as income divided by assets invested.

Responses:

Liabilities

Expenses

Accounting equation

Assets

Risk

Return on assets

Owner withdrawals

Owner capital

Correct Answer:

Premises:

Responses:

The uncertainty about the return to be earned.

Resources such as cash that an owner takes from the company for personal use.

Resources such as cash that an owner puts into the company.

Expresses the relation of assets, liabilities and equity in a company, comparing the resources the company owns to the sources of funds to acquire the resources.

Resources a company owns or controls that are expected to yield future benefit.

Decreases in equity from costs of providing products or services to customers.

Creditor's claims on a company's assets.

A financial ratio stated as income divided by assets invested.