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    match terms to description of those accounting terms

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    Match the term with the correct definition


    A The plan of organization and all the related methods and measures adopted within a business to safeguard its assets and enhance the accuracy and reliability of its accounting records.
    B Law that forces companies to pay more attention to internal control.
    C Company employees who evaluate on a continuous basis the effectiveness of the company's system of internal control.
    D An expense account to record credit losses.
    E Management establishes a percentage relationship between the amount of receivables and expected losses from uncollectible accounts.
    F A method of accounting for bad debts that involves expensing accounts at the time they are determined to be uncollectible.
    G A form of interest-bearing note payable issued by corporations, universities, and governmental agencies.
    H A contractual arrangement giving the lessee temporary use of the property with continued ownership of the property by the lessor. Accounted for as a rental.
    I Bonds that permit bondholders to convert them into common stock at their option.
    J The amount stockholders paid to the corporation in exchange for shares of ownership.
    K Contractual provisions that give it preference or priority over common stock in certain areas.
    L Net income that a company retains in the business.
    M A technique for evaluating financial statement data that expresses each item in a financial statement as a percent of a base amount.
    N A comparison of the market price of each share of common stock to the earnings per share, computed as the market price of the stock divided by earnings per share.
    O Events and transactions that meet two conditions: They are unusual in nature and infrequent in occurrence.
    P Securities held for resale.
    Q Securities not classified as trading securities or held-to-maturity securities.
    R Securities for which the reporting enterprise has both the positive intent and ability to hold those securities to maturity.
    S A lease in which the lessee obtains some ownership rights over the asset involved in the transaction, resulting in the recording of the asset as company property on its general ledger.
    T An arrangement whereby a firm leases its own equipment, such as IBM leasing its own computers, thereby competing with an independent leasing company.
    U The average time required for the cash invested in inventories to be converted into the cash ultimately collected on sales made to customers.
    V An overall financial and operating plan, including budgets for all aspects of business operations and for all responsibility centers.
    W A budget that can readily be revised to reflect budgeted amounts given the actual levels of activity (sales and production) achieved during the period. Makes use of cost-volume-profit relationships to restate the master budget for the achieved level of activity.

    Match Term

    Extraordinary items
    Direct Write-off Method
    Convertible Bonds
    Capital Lease
    Bad Debts Expense
    Flexible Budget
    Internal auditors
    Internal control B
    Master Budget
    Price-Earnings (P-E) Ratio
    Preferred stock
    Percentage of Receivables Basis
    Paid-in capital
    Operating Leases
    Operating Cycle
    Retained earnings
    Sales-Type Lease
    Sarbanes-Oxley Act of 2002 (SOX)
    Securities available for sale:
    Vertical Analysis
    Trading Securities
    Securities Held to Maturity

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    I had one term "left over" and one term used ...

    Solution Summary

    A classic accounting exercise to help reinforce understanding of concepts. No detailed definitions or added instruction included with the matched items.