Chapter 2, Problem 31EB

Elements of the financial statements. (LO 3). Listed are elements of the financial statements discussed in this chapter. Match each element with the descriptions (use each as many times as necessary).

1. a. Assets
2. b. Liabilities
3. c. Shareholders’ equity
4. d. Revenues
5. e. Expenses
6. f. Retained earnings
7. g. Common stock
8. 1. ________ Note signed with a bank
9. 2. ________ Rent paid a year in advance
10. 3. ________ Items that make up net income that appear on the income statement
11. 4. ________ Items that appear on the balance sheet
12. 5. ________ A share of ownership in a corporation
13. 6. ________ Equity that results from doing business and is kept in the company rather than paid out to stockholders
14. 7. ________ Shareholders’ interest in the company
15. 8. ________ Costs of the daily operations of a business
16. 9. ________ Salaries owed to employees
17. 10. ________ Cost of inventory when it is sold
18. 11. ________ Revenue received for services not yet provided
19. 12. ________ Interest received on notes receivable