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Match Each of the Following Terms with the Most Appropriate

Question 256

Matching

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

Premises:

Responses:

The uncertainty about the return to be earned.

Dividends

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.

Expenses

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

Accounting equation

A financial ratio stated as income divided by assets invested.

Return on assets

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

Risk

Resources such as cash that a stockholder puts into the company.

Assets

Creditor's claims on a company's assets.

Liabilities

Resources such as cash that a stockholder r receives from the company for personal use.

Common stock

Premises:

The uncertainty about the return to be earned.

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.

A financial ratio stated as income divided by assets invested.

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

Resources such as cash that a stockholder puts into the company.

Creditor's claims on a company's assets.

Resources such as cash that a stockholder r receives from the company for personal use.

Responses:

Dividends

Expenses

Accounting equation

Return on assets

Risk

Assets

Liabilities

Common stock

Correct Answer:

Premises:

Responses:

The uncertainty about the return to be earned.

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.

A financial ratio stated as income divided by assets invested.

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

Resources such as cash that a stockholder puts into the company.

Creditor's claims on a company's assets.

Resources such as cash that a stockholder r receives from the company for personal use.