Question
ion by entering your answers in the tabs below. 18 lat best matches each term. Definition An obligation to pay cash in the future. Assets - Liabilities -Common Stock. Certificates that evidence ownership in a company. Common Stock+Retained Earnings Economic resources that will be used by a business to produce revenue. Individuals or institutions that have contributed assets or services to a business in e exchange for an ownership interest in the business.
Answer
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(365 Votes)
Norris
Master · Tutor for 5 years
Answer
Liabilities2. Certificates that evidence ownership in a company.【Explanation】: This definition describes a financial instrument that signifies an individual's or entity's ownership stake in a corporation. These are known as shares or stock. When referring to the equity section of a balance sheet, the term "Common Stock" is used to represent the ownership units issued by a company.【Answer】: Common Stock3. Common Stock + Retained Earnings.【Explanation】: This definition is describing the components that make up the shareholders' equity part of a balance sheet. Common Stock represents the initial capital invested by shareholders, while Retained Earnings represent the accumulated profits that have been reinvested in the business rather than distributed as dividends. Together, they represent the total equity of the company.【Answer】: Shareholders' Equity4. Economic resources that will be used by a business to produce revenue.【Explanation】: This definition refers to the assets of a company. Assets are resources that a business owns or controls, which are expected to bring future economic benefits, such as cash, inventory, property, and equipment.【Answer】: Assets5. Individuals or institutions that have contributed assets or services to a business in exchange for an ownership interest in the business.【Explanation】: This definition is talking about the parties that provide resources or services to a company and, in return, receive an ownership stake. This is typically represented by the issuance of Common Stock, which indicates the ownership interest these parties have in the company.【Answer】: Common StockTo summarize, the terms match the definitions as follows:- An obligation to pay cash in the future: **Liabilities**- Certificates that evidence ownership in a company: **Common Stock**- Common Stock + Retained Earnings: **Shareholders' Equity**- Economic resources that will be used by a business to produce revenue: **Assets**- Individuals or institutions that have contributed assets or services to a business in exchange for an ownership interest in the business: **Common Stock**
Explanation
This definition refers to a financial commitment that a company is required to fulfill at some point in the future. In accounting, this is known as a liability. Liabilities are what the company owes to others, such as loans, accounts payable, mortgages, and other debts.