Match the appropriate letter for the key term or concept to each definition provided (items 1–15). Note that not all key terms and concepts will be used.
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a. Accumulated depreciation |
p. Earnings per share of common |
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b. Balance sheet |
stock |
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c. Accrued liabilities |
q. Paid in capital |
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d. Current assets |
r. Common stock |
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e. Current liabilities |
s. Additional paid in capital |
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f. Merchandise inventory |
t. Retained earnings |
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g. Revenues |
u. Dividends |
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h. Expenses |
v. Par value |
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i. Gains |
w. Going concern concept |
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j. Losses |
x. Matching concept |
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k. Net sales |
y. Accrual concept |
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l. Cost of goods sold |
z. Opportunity cost |
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m. Gross profit |
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n. Income from operations |
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o. Net income |
1. The difference between the total amount invested by the owners and the par value or stated value of the stock issued.
2. Outflows or using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s major operations.
3. The financial statement that is a list of the entity’s assets, liabilities, and owners’ equity at a point in time.
4. A document distributed to stockholders that contains the financial statements for the fiscal year of the reporting firm with the report of the external auditor’s examination of the financial statements.
5. A distribution of earnings to the owners of a corporation.
6. An arbitrary value assigned to a share of stock when the corporation is organized.
7. Net income available to the common stockholders divided by the average number of shares of common stock outstanding during the period.
8. Items held by an entity for sale to potential customers in the normal course of business.
9. Inflows of cash or increases in other assets, or settlement of liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity’s major operations.
10. Cash and those assets likely to be converted to cash or used to benefit the entity within one year of the balance sheet date.
11. Cumulative net income that has not been distributed to the owners of a corporation as dividends.
12. The difference between gross profit and operating expenses. Also referred to as operating income and earnings from operations.
13. Increases in net assets from incidental transactions and other events affecting an entity during a period except those that result from revenues or investments by owners.
14. A presumption that the entity will continue in existence for the indefinite future.
15. Net sales less cost of goods sold.