Answer
(a) Basic accounting equation (8)
(b) Certified public accountant (CPA) (1)
(c) Dividends (4)
(d) Expenses (9)
(e) Liabilities (10)
(f) Management discussion and analysis (MD&A) (2)
(g) Net loss (6)
(h) Revenue (3)
(i) Sarbanes-Oxley Act (SOX) (11)
(j) Sole proprietorship (7)
(k) Stockholders’ equity (5)
Work Step by Step
Match each term or phrase to its description below.
a. _______ Assets = Liabilities + Stockholders' Equity.
b. _______ An individual who has met certain criteria and is thus allowed to perform audits of corporations.
c. _______ Payments of cash from a corporation to its stockholders.
d. _______ The cost of assets consumed or services used in the process of generating revenues.
e. _______ Amounts owed to creditors in the form of debts and other obligations.
f. _______ A section of the annual report that presents management's views on the company's ability to pay near-term obligations, its ability to fund operations and expansion, and its results of operations.
g. _______ The amount by which expenses exceed revenues.
h. _______ The increase in assets or decrease in liabilities resulting from the sale of goods or the performance of services in the normal course of business.
i. _______ Regulations passed by Congress to reduce unethical corporate behavior.
j. _______ A business owned by one person.
k. _______ The owners' claim to assets.
