Finance and financial system

Ex 2. Match each definition with its related term.

1.     accounting                                   a) a statement that reports the revenues

2.     accounting Entity                            less the expenses of the accounting

3.     accounting period                               period

4.     audit                                           b) a statement that reports the financial

5.     balance sheet                                      position of an

6.     basic accounting equation              c) a system that collect and processes

7.     income statement                               financial information about an  

8.     statement of cash Flows                     organization and reports that

9.     Statement of retained earnings           information to desion makers

                                                              d) An examination of the financial

                                                                   reports to assure that they represent 

                                                                   what they claim and conform with 

                                                                   generally accepted accounting

                                                                        principles

                                                               e) a statement that reports in flows

                                                                       and out flows of cash during the

                                                                       accounting period in the categories 

                                                                       of operations, investing and financing.

                                                                  g) assets = liabilities + Stockholders 

                                                                      Equity

                                                                  h) the organization for which financial

                                                                      data are to be collected

                                                                  j)  a statement that reports how net 

                                                                      income and the distribution of dividends

                                                                      affected the financial position of the

                                                                      company during the accounting period