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