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1. Match the following definitions/terms by placing theNumber that identifies the best definition in Answer Column. Note:15 Definitions – Second page.

Answer	Terms	#	Definition
	Assets	1	The accounting principle that requires assets and services to berecorded initially at the cash or cash-equivalent amount given inexchange.
	Going-concern principle	2	Value of assets exchanged for products or services provided tocustomers as part of the main operations of the business.
	Statement of owner's equity	3	The rule that requires financial statements to reflect theassumption that the business will continue operating instead ofbeing closed or sold, unless evidence shows that it will notcontinue.
	Cost principle	4	Properties or resources owned by a business.
	Withdrawal	5	A financial statement that reports the changes in equity overthe reporting period; beginning equity is adjusted for increasessuch as owner investment or net income and for decreases such asowner withdrawals or a net loss.
	Revenues	6	A payment of cash or other assets from a proprietorship orpartnership to its owner or owners.
	List price	7	Format that does not present intermediate totals other thantotal expenses.
	Merchandise inventory	8	The abbreviation for free on board; the designated point atwhich ownership of goods passes to the buyer.
	EOM	9	Goods a company owns and holds for the purpose of selling themto its customers
	Single-step income statement	10	Support the overall operations of a business and include theexpenses of such activities as providing accounting services, humanresource management, and financial management.
	FOB	11	The abbreviation for end-of-month; used to describe credit termsfor some transactions.

	Shrinkage	12	Losses that occur as a result of shoplifting ordeterioration.
	Selling expenses	13	Format that shows several intermediate totals between sales andnet income
	Classified multiple-step income statement	14	The catalogue of an item before any trade discount isdeducted.
	General and administrative expense	15	Promoting sales by displaying and advertising the merchandise,making sales, and delivering goods to customers.