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.