Relier Pairs Balance Sheet & P & LVersion en ligne Match the key terms descriptions to the Balance Sheet and Income Statement classifications par Andy Gold 1 Debts or obligations of a business that are to be fulfilled within one year or the normal operating cycle, whichever is longer. These obligations are fulfilled by giving current assets, rendering services, or replacing them with other current liabilities. 2 The equity in the profits of a corporation that are kept in the corporation for operating, expansion, or other purposes. 3 Debts or obligations of a business that are not Current Liabilities. 4 Gross Margin – Operating Expenses 5 Net Sales – Costs of Goods Sold 6 Tangible long-term assets used in business operations. 7 Cash or other assets that are expected to be converted into cash or used in the generation of revenue within one year or the business’ normal operating cycle,whichever is longer. 8 Sales – (Sales Returns and Allowances + Sales Discounts) 9 Long-term assets, whose values are derived from some right or privilege associated with them, that do not have tangible characteristics of consequential value. (e.g. trademarks, patents, franchises). 10 Assets, usually long-term, that are owned by a business but not used in the primary operations of the business. Income from Operations Net Sales Current Liabilities Retained Earnings Investments Long Term Liabilities Intangible Assets Current Assets Plant, Property, and Equipment Gross Profit
