write the identifying letter of the best response in the chart below for the items described in questions 1 through 12.

A adequate (or full) disclosure

B adjusting entries

C administrative expenses

D authorized capital stock

E capital stock available for issuance

F closely held corporation

G closing entries

H common stock

I comparability

J correcting entries

K discounted note

L dishonored note

M issued stock

N objective evidence

O Paid-in Capital in Excess of Par

P par value

Q preferred stock

R premium

S promissory note

T publicly held corporation

U reliability

V Retained Earnings

W reversing entries

X selling expenses

1. This accounting concept is applied when a source document is prepared for each

transaction.

2. a corporation whose stock is widely held, has a large market, and is usually traded

on a major stock exchange

3. the operating expenses incurred to sell or market the merchandise sold

4. the maximum number of shares a corporation may issue

5. the cost of insurance protection

6. This accounting concept means that financial reports include enough information to understand a business’s financial condition.

7. If the corporation issues only one class of capital stock, it is called _?_.

8. Entries that may be made whenever an adjusting entry creates a balance in an asset or liability account that initially had a zero balance

9. This account represents the increase in stockholders’ equity from the portion of net income not distributed to the stockholders.

10. A note that is not paid when due

11. The amount assigned to each share of stock that is printed on the stock certificate is referred to as _?_.

12. This characteristic of financial information relates to the confidence users have that the financial information is reasonably free from bias and error.