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