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Match the Following Definitions with the Appropriate Term

Question 297

Matching

Match the following definitions with the appropriate term

Premises:

Responses:

The uncertainty about the return to be earned.

Return on assets

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

Assets

A financial ratio stated as income divided by assets invested.

Expenses

Creditor's claims on a company's assets.

Risk

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

Liabilities

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

Owner withdrawals

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

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.

Owner capital

Premises:

The uncertainty about the return to be earned.

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

A financial ratio stated as income divided by assets invested.

Creditor's claims on a company's assets.

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

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

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

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.

Responses:

Return on assets

Assets

Expenses

Risk

Liabilities

Owner withdrawals

Accounting equation

Owner capital

Correct Answer:

Premises:

Responses:

The uncertainty about the return to be earned.

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

A financial ratio stated as income divided by assets invested.

Creditor's claims on a company's assets.

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

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

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

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.