| A) | A balance sheet that presents the assets and liabilities in relevant subgroups. (p. 216)
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| B) | A temporary account used only in the closing process to which the balances of revenue and expense accounts are transferred; its balance equals net income or net loss and is transferred to the owner's capital account. (p. 207)
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| C) | Obligations that are not due to be paid within the longer of one year or the operating cycle. (p. 219)
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| D) | Accounts that are used to describe revenues, expenses, and owner's withdrawals for one accounting period; they are closed at the end of the reporting period; also called nominal accounts. (p. 206)
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| E) | Internal documents that are used to assist the preparers in doing the analyses and organizing the information for reports to be presented to internal and external decision makers. (p. 200)
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| F) | Long-lived tangible capital assets used to produce or sell products and services; abbreviated PPE. (p. 218)
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| G) | Obligations due to be paid or settled within the longer of one year or the operating cycle. (p. 219)
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| H) | The ability to pay day-to-day obligations (current liabilities) with existing liquid assets. (p. 225)
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| I) | Journal entries recorded at the end of each accounting period that transfer the end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account in order to prepare for the upcoming period and update the owner's capital account for the events of the period just finished. (p. 207)
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| J) | Cash or other assets that are expected to be sold, collected, or used within the longer of one year or the company's operating cycle. (p. 218)
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| K) | A ratio that is used to evaluate a company's ability to pay its short-term obligations, calculated by dividing current assets by current liabilities. (p. 225)
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| L) | Assets not used in day-to-day operating activities that are held for more than one year or the operating cycle such as a long-term note receivable. (p. 218)
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| M) | See temporary accounts. (p. 206)
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| N) | For a business, the average time between paying cash for employee salaries or merchandise and receiving cash from customers. (p. 216)
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| O) | Optional entries recorded at the beginning of a new period that prepare the accounts for simplified journal entries subsequent to accrual adjusting entries. (p. 223)
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| P) | A balance sheet that broadly groups the assets, liabilities, and owner's equity. (p. 216)
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| Q) | Assets that can easily be converted to cash or used to pay for services or obligations; cash is the most liquid asset. (p. 225)
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| R) | A 10-column spreadsheet used to draft a company's unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements; an optional step in the accounting process. (p. 200)
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| S) | Long-lived assets used to produce or sell products and services and consist of tangible assets called property, plant and equipment, and intangible capital assets. (p. 218)
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| T) | A step at the end of the accounting period that prepares accounts for recording the transactions of the next period. (p. 206)
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| U) | Statements that show the effects of the proposed transactions as if the transactions had already occurred. (p. 203)
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| V) | A list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted; a list of balances for all accounts not closed. (p. 211)
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| W) | Accounts that are used to report on activities related to one or more future accounting periods; their balances are carried into the next period, and include all balance sheet accounts; permanent account balances are not closed as long as the company continues to own the assets, owe the liabilities, and have owner's equity; also called real accounts. (p. 206)
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| X) | Long-lived capital assets that lack physical form and are used to produce or sell products or services. Goodwill is an intangible asset but it is not a capital asset. (p. 218)
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| Y) | The owner's claim on the assets of a company. (p. 219)
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