Question

Question 13 6.5 points A Match each phrase from list A with the correct term from list B by placing the letter designating in the answer Colum Going concern assumption recorded when an expense is incurred but not yet paid Monetary unit assumption Criteria usually satisfied at point of sale Economic entity assumption Indicates the extent of reliance on creditors, rather than owners, in providing resources w Accrued liabilities D is residual interest in the assets of the entity after deducting all its liabilities The entity will continue indefinitely Unqualified opinion F Relates to the amount of time before an asset is converted to cash or a liability is paid Revenue recognition The enterprise is separate from its owners and other entities Shareholders' Equity A common denominator is the dollar Debt to equity ratio The statements are presented fairly in conformity with accounting standards Times interest earned ratio Indicates the margin of safety provided to creditors J. Liquidity E

Answer 1

Going concern Assumption	E	The entity will continue indefinitely
Monetary unit assumption	H	A common denominator is Dollar
Economic entity assumption	G	The enterprise is separated from its owners and other entities
Accrued liabilities	A	Recorded when a expense is incurred but not yet paid
Liquidity	F	Relates to the amount of time before an asset is converted to cash or liability is paid
Unqualified opinion	I	The statements are presented fairly in conformity with accounting standards
Revenue recognition	B	Criteria usually satisfied at point of sale
shareholders equity	D	is residual interest in the assets of entity after deducting its liabilities
Debt to equity ratio	C	Indicates the extent of reliance on creditors rather than owners In providing resources.
Times interest earned ratio	J	Indicates the margin of safety provided to creditors