Chapter 1, Problem 3ME

Matching Definitions with Terms

Match each definition with its related term by entering the appropriate letter in the space provided.

Term	Definition
____ 1. Relevance	A. The financial reports of a business are assumed to include the results of only that business’s activities.
____ 2. Faithful Representation
____ 3. Expenses	B. The resources owned by a business.
____ 4. Separate Entity	C. Financial information that depicts the economic substance of business activities.
____ 5. Assets
____ 6. Liabilities	D. The total amounts invested and reinvested in the business by its owners.
____ 7. Stockholders’ Equity	E. The costs of business necessary to earn revenues.
____ 8. Revenues	F. A feature of financial information that allows it to influence a decision.
	G. Earned by selling goods or services to customers.
	H. The amounts owed by the business.