Match each of the following terms with the most appropriate definition.
A) Risk
B) Return on assets
C) Expenses
D) Accounting equation
E) Dividends
F) Assets
G) Liabilities
H) Common stock
1. The uncertainty about the return to be earned.
2. Evidence of inflows of resources such as cash and other assets from stockholders.
3. A financial ratio stated as income divided by assets invested.
4. Creditor's claims on a company's assets.
5. Creditor's claims on a compan's assets.
6. Reflects outflows of resources such as cash and other assets to stockholders.
7. Resources a company owns or controls that are expected to yield future benefit.
8. Expresses the relation of assets, liabilities and equity in a company, comparing the
resources the company owns to the sources of funds to acquire the resources.
1. A
2. H
3. B
4. G
5. C
6. E
7. F
8. D
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