196. Match each of the following terms with the most appropriate definition. a. Return on assetsb. Assetsc. Expensesd. Riske. Liabilitiesf. Dividendsg. Accounting equationh. Common stock____ 1. The...

196. Match each of the following terms with the most appropriate definition.

a. Return on assets
b. Assets
c. Expenses
d. Risk
e. Liabilities
f. Dividends
g. Accounting equation
h. Common stock


____ 1. The uncertainty about the return to be earned.
____ 2.Resources such as cash that a stockholder puts into the company.
____ 3. A financial ratio stated as income divided by assets invested.
____ 4. Creditor’s claims on a company’s assets.
____ 5. Decreases in equity from costs of providing productsor services to customers.
____ 6.Resources such as cash that a stockholder r receives from the company for personal use.
____ 7.Resources a company owns or controls that are expected to yield future benefit.
____ 8. Expresses the relation of assets, liabilities and equity in a company, comparing the resources the company owns to the sources of funds to acquire the resources.

1. D; 2. H; 3. A; 4. E; 5. C; 6. F; 7. B; 8. G

197. The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.


a. Suppliers
b. Lenders
c. Shareholders
d. PurchasingManagers
e. Regulators


____ 1. Know what, when, and how much to purchase.
____ 2. Judge the soundness of a customer before making sales on credit.
____ 3. Assess whether a company has paid all required taxes and complied with securities rules.
____ 4. Assess whether an organization is likely to repay its loans with interest.
____ 5. Decide whether to buy, hold, or sell a company’s stock.