Listed below are several terms and phrases associated with the balance sheet and financial
disclosures. Pair each item from List A (by letter) with the item from List B that is most
appropriately associated with it. ist A List B 1. Balance sheet 2. Liquidity 3. Current assets
4.Operating cycle 5. Current liabilities 6. Cash equivalent 7. Intangible asset 8. Working capital
9.Accrued liabilities a. Will be satisfied through the use of current assets. h. Items expected to be
converted to cash or consumed within one year or the operating cycle, whichever is longer c. The
statements are presented fairly in conformity with GAAP d. An organized array of assets,
liabilities, and equity e. Important to a user in comparing financial information across companies
f. Scope limitation or a departure from GAAP g. Recorded when an expense is incurred but not
yet paid h. Refers to the ability of a company to convert its assets to cash to pay its current
obligations i. Occurs after the fiscal year-end but before the statements are issued . Period of time
from payment of cash to collection of cash. k. One-month U.S. Treasury bill l. Current assets
minus current liabilities Summary of significant accounting 10 11 Subsequent events 12
Unqualified opinion 13 Qualified opinion cies Lacks physical substance
Solution
1. Balance Sheet - d-\"An organized array of assets, liabilities and equity\"
2. Liquidity - h-\"Refers to the ability of a company to convert its assets to cash to pay its current
obligations\"
3. Current Assets - b-\"Items expected to be converted to cash or consumed within one year or
the operating cycle, whichever is longer\"
4. Operating Cycle - j - \"Period of time from payment of cash to collection of cash\"
5. Current Liabilities - a - \"will be satisfied through the use of current assets\"
6. Cash equivalent - k - \"One-month U.S. Treasury bill\"
7. Intangible Asset - m - \"Lacks physical substance\"
8. Working Capital - l - \"Current assets minus current liabilities\"
9. Accrued Liabilities - g - \"Recorded when an expense is incurred but not yet paid\"
10. Summary of significant accounting policies - e - \"Important to a user in comparing financial
information across companies\"
11. Subsequent events - i - \"Occurs after the fiscal year-end but before the statements are
issued\"
12. Unqualified opinion - c - \"The statements are presented fairly in conformity with GAAP.\"
13. Qualified opinion - f - \"Scope limitation or a departure from GAAP\".
Listed below are several terms and phrases associated with the balanc.pdf
1. Listed below are several terms and phrases associated with the balance sheet and financial
disclosures. Pair each item from List A (by letter) with the item from List B that is most
appropriately associated with it. ist A List B 1. Balance sheet 2. Liquidity 3. Current assets
4.Operating cycle 5. Current liabilities 6. Cash equivalent 7. Intangible asset 8. Working capital
9.Accrued liabilities a. Will be satisfied through the use of current assets. h. Items expected to be
converted to cash or consumed within one year or the operating cycle, whichever is longer c. The
statements are presented fairly in conformity with GAAP d. An organized array of assets,
liabilities, and equity e. Important to a user in comparing financial information across companies
f. Scope limitation or a departure from GAAP g. Recorded when an expense is incurred but not
yet paid h. Refers to the ability of a company to convert its assets to cash to pay its current
obligations i. Occurs after the fiscal year-end but before the statements are issued . Period of time
from payment of cash to collection of cash. k. One-month U.S. Treasury bill l. Current assets
minus current liabilities Summary of significant accounting 10 11 Subsequent events 12
Unqualified opinion 13 Qualified opinion cies Lacks physical substance
Solution
1. Balance Sheet - d-"An organized array of assets, liabilities and equity"
2. Liquidity - h-"Refers to the ability of a company to convert its assets to cash to pay its current
obligations"
3. Current Assets - b-"Items expected to be converted to cash or consumed within one year or
the operating cycle, whichever is longer"
4. Operating Cycle - j - "Period of time from payment of cash to collection of cash"
5. Current Liabilities - a - "will be satisfied through the use of current assets"
6. Cash equivalent - k - "One-month U.S. Treasury bill"
7. Intangible Asset - m - "Lacks physical substance"
8. Working Capital - l - "Current assets minus current liabilities"
9. Accrued Liabilities - g - "Recorded when an expense is incurred but not yet paid"
10. Summary of significant accounting policies - e - "Important to a user in comparing financial
information across companies"
11. Subsequent events - i - "Occurs after the fiscal year-end but before the statements are
issued"
12. Unqualified opinion - c - "The statements are presented fairly in conformity with GAAP."
13. Qualified opinion - f - "Scope limitation or a departure from GAAP"
