Answer:
Matching each term with its definition:
Income Statement (thousands of dollars) Year 1
A. Revenues (Sales) 7,000 : 1. Money generated by a firm's products or services
B. Cost of Goods Sold (2,781) : 2. Cost associated with making and selling the firm's products
C. Operating Expenses (1,809) : 3. Cost of generating the current period's revenues including rent, wages, supplies and general and administrative expenses.
D. Operating income (EBIT) 2,410 : 4. Shows the profit or loss a firm makes before paying taxes
E. Interest expense (190) : 5. Cost of servicing the firm's debt.
F. Taxes payable 2,220 : 6. Earnings before interest and taxes
G. Taxes (434) : 7. Includes all Federal, State and Local taxes paid by the firm
H. Net income 1,786 : 8. The profit (or loss) made by the firm
I. Cash Flow Statement : 13. Shows cash from operating, investing, and financing activities
J. Accounting Equation : 10. Assets = Liabilities + Equity
K. Net Income : 11. Profits generated by an organization
L. Balance Sheet : 9. "Snapshot" of a company's activities at a given point in time
M. Income statement : 12. Shows revenues, expenses, and profitability over a period of time
N. Liquidity : 14. How quickly assets can be converted into cash
Explanation:
