Question

Match the word or phrase with the best description of it. (a) select the correct word or phrase An expression about whether financial statements conform with generally accepted accounting principles. (b) select the correct word or phrase A business that raises money by issuing shares of stock. (c) select the correct word or phrase The portion of stockholders’ equity that results from receiving cash from investors. (d) select the correct word or phrase Obligations to suppliers of goods. (e) select the correct word or phrase Amounts due from customers. (f) select the correct word or phrase A party to whom a business owes money. (g) select the correct word or phrase A party that invests in common stock. (h) select the correct word or phrase A business that is owned jointly by two or more individuals but does not issue stock.

Answer 1

Answer:

a. Auditor's opinion

b. Corporation

c. Common Stock

d. Accounts Payable

e. Accounts Receivable

f. Creditor

g. Stockholder

h. Partnership

Explanation:

a. Auditor's opinion reflects whether the financial statements conform to the generally accepted accounting principles or not.

b. A corporation is a business that raises funds by issuing shares of stock. The party who purchase these stocks are called stockholders.

c. The portion of stockholders’ equity that results from receiving cash from investors is called common stock.

d. Accounts payable is the obligations that need to be paid by the business.

e. Accounts receivable is the amount that the business is yet to get from the customers.

f. The creditor is a party that provides funds to businesses. The business owes money to creditors.

g. A party that invests in or purchases stocks is called a stockholder.

h. A business that is owned by two or more individuals but does not issue the stock for funding is called a partnership.