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Accounting definitions

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Match the definitions on the left with the answers on the right.

1. ___ Aging of Accounts Receivable A. Evaluate liquidity by dividing current assets by current liabilities
2. ___ Balance Sheet B. A report of the sales, costs, and net income of the company for a period of time (usually annually)
3. ___ Cash Discount C. Ability to compare the accounting information of different companies because they use the same accounting principles
4. ___ Cost of Goods Sold D. Analysis to determine whether customers are paying their bills within the time prescribed by credit terms
5. ___ Comparability E. A break-down of a company's assets and claims on those assets by shareholders and debt holders.
6. _A__ Income Statement F. Financing and management of the firm's current assets
7. ___ Current Ratio G. Long-term agreement allowing one party (lessee) to use another party's asset (lessor) accounted for like a purchase.
8. ___ Cost Principle H. Discount given if payment is made within specified period of time.
9. ___ Free cash flow I. Costs associated with inventory - includes warehouse space, insurance premiums, and material handling expenses
10. ___ Profitability Ratios J. Cash provided by operating activities adjusted for capital expenditures and dividends paid.
11. ___ Statement of Cash Flows K. Measure of firm's ability to earn adequate return on sale, total assets, and invested capital
12. ___ Working Capital Management L. Companies should record assets at their cost.
13. ___Carrying costs M. Current Assets minus Current Liabilities
14. ___Capital Lease N. Costs associated with units sold during a time period
15. ___Working Capital O. A report breaking down of the impact of operations, investing, and financing on cash flows

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Match the definitions on the left with the answers on the right.

1. ___ Aging of Accounts Receivable A. Evaluate liquidity by dividing current assets by current liabilities
2. _E__ Balance Sheet B. A report of the sales, costs, and net income of the company for a period of time (usually annually)
3. _H__ Cash Discount C. Ability to compare the accounting information of different companies because they use the same accounting principles
4. _N__ Cost of Goods Sold D. Analysis to determine whether customers are paying their bills within the time ...

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This discusses the Accounting definitions

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O'Shea Enterprises started the 2002 accounting period with $30,000 of assets (all cash), $18,000 of liabilities, and $4,000 of common stock. During the year, O'Shea earned cash revenues of $48,000, paid cash expenses of $32,000, and paid a cash dividend to stockholders of $2,000. O'Shea also acquired $10,000 of additional cash from the sale of common stock and paid $6,000 cash to reduce the liability owed to a bank.

Required
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