Chapter 2, Problem 3ME

Matching Terms with Definitions

Match each term with its related definition by entering the appropriate letter in the space provided. There should be only one definition per term. (That is, there are more definitions than terms.)

Term	Definition
_______ 1. Journal entry	A. An exchange or event that has a direct and measurable financial effect.
_______ 2. A = L + SE: Debits = Credits
_______ 3. Transaction	B. Four periodic financial statements.
_______ 4. Liabilities	C. The two equalities in accounting that aid in providing accuracy.
_______ 5. Assets
_______ 6. Income statement, balance sheet, statement of retained earnings, and statement of cash flows	D. The results of transaction analysis in debits-equal-credits format.
	E. The account that is debited when money is borrowed from a bank.
	F. A resource owned by a business, with measurable value and expected future benefits.
	G. Cumulative earnings of a company that are not distributed to the owners.
	H. Every transaction has at least two effects.
	I. Amounts presently owed by a business.
	J. Assigning dollar amounts to transactions.