Q3: Match the items below by entering the appropriate code letter in the space provided. G. Working capital H. Current ratio A. Relevance B. Liquidity ratios C. Comparability D. Consistency E. Intangible assets F. Free cash flow I. Earnings per share J. Solvency ratios K. Economic entity assumption L. Materiality J_ 1.Measures of the ability of the company to survive over a long period of time. H_ 2.Current assets divided by current liabilities. - AL 3.Information that has a bearing on a decision. 4. Economic events can be identified with a particular unit of accountability. 5. An item important enough to influence the decision of an investor or creditor. 6. Same accounting principles and methods used from year to year within a company. 7. Cash from operating activities less capital expenditures and cash dividends. 8. Noncurrent assets that do not have physical substance. 9. (Net income - preferred stock dividends) divided by average common shares outstanding. 10. Different companies using the same accounting principles. 11. Measures of the short-term ability of the enterprise to pay its maturing obligations. 12. The excess of current assets over current liabilities. -

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter5: Completing The Accounting Cycle
Section: Chapter Questions
Problem 14EA: Using the following Balance Sheet summary information, calculate for the two companies presented: A....
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Q3:
Match the items below by entering the appropriate code letter in the space provided.
A. Relevance
G. Working capital
B. Liquidity ratios
C. Comparability
D. Consistency
E. Intangible assets
F. Free cash flow
H. Current ratio
Earnings per share
J. Solvency ratios
K. Economic entity assumption
L. Materiality
I.
J_ 1.Measures of the ability of the company to survive over a long period of time.
H_ 2.Current assets divided by current liabilities.
-
AL 3.Information that has a bearing on a decision.
4. Economic events can be identified with a particular unit of accountability.
-
5. An item important enough to influence the decision of an investor or creditor.
|
6. Same accounting principles and methods used from year to year within a company.
7. Cash from operating activities less capital expenditures and cash dividends.
8. Noncurrent assets that do not have physical substance.
9. (Net income – preferred stock dividends) divided by average common shares outstanding.
10. Different companies using the same accounting principles.
11. Measures of the short-term ability of the enterprise to pay its maturing obligations.
12. The excess of current assets over current liabilities.
Transcribed Image Text:Q3: Match the items below by entering the appropriate code letter in the space provided. A. Relevance G. Working capital B. Liquidity ratios C. Comparability D. Consistency E. Intangible assets F. Free cash flow H. Current ratio Earnings per share J. Solvency ratios K. Economic entity assumption L. Materiality I. J_ 1.Measures of the ability of the company to survive over a long period of time. H_ 2.Current assets divided by current liabilities. - AL 3.Information that has a bearing on a decision. 4. Economic events can be identified with a particular unit of accountability. - 5. An item important enough to influence the decision of an investor or creditor. | 6. Same accounting principles and methods used from year to year within a company. 7. Cash from operating activities less capital expenditures and cash dividends. 8. Noncurrent assets that do not have physical substance. 9. (Net income – preferred stock dividends) divided by average common shares outstanding. 10. Different companies using the same accounting principles. 11. Measures of the short-term ability of the enterprise to pay its maturing obligations. 12. The excess of current assets over current liabilities.
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