Matching Pairs Balance Sheet & P & LOnline version Match the key terms descriptions to the Balance Sheet and Income Statement classifications by Andy Gold 1 Debts or obligations of a business that are not Current Liabilities. 2 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. 3 Sales – (Sales Returns and Allowances + Sales Discounts) 4 Gross Margin – Operating Expenses 5 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). 6 The equity in the profits of a corporation that are kept in the corporation for operating, expansion, or other purposes. 7 Tangible long-term assets used in business operations. 8 Assets, usually long-term, that are owned by a business but not used in the primary operations of the business. 9 Net Sales – Costs of Goods Sold 10 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. Net Sales Retained Earnings Income from Operations Current Assets Gross Profit Long Term Liabilities Current Liabilities Investments Intangible Assets Plant, Property, and Equipment
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