Matching Questions
1.Identify which of the users of financial statement information listed in A through E would most likely desire and/or benefit from the economic aspects listed in items 1 through 5 below. You may use each letter more than once or not at all.
Users
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A.bankers
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B.potential investors
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C.government agencies
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D. customers
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E.managers
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_______1.Want to choose a company to earn returns potentially higher than fixed income instruments
_______2.Need to predict future cash flows necessary for repayment
_______3.Want to determine how much tax a company must pay
_______4.Want the best product possible for the money
_______5.Want to maintain a level of compensation
2.For each description listed in items 1 through 4 below, select the letter of the accounting term (A through F) it best describes. You may use each letter more than once.
Accounting Terms
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A.
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Asset
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B.
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Liability
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C.
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Retained earnings
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D.
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Revenue
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E.
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Expenses
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F.
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Equity investment
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|
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_______1.Total measured past growth less the amount distributed to owners
_______2.A measure of assets generated from the products and services sold
_______3.Owed and must be paid in the future
_______4.Amount invested in the firm by its owners