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Match the Items Below by Entering the Appropriate Code Letter

Question 213

Matching

Match the items below by entering the appropriate code letter in the space provided.

Premises:

Responses:

Recognition of revenue when the performance obligation is satisfied

Revenue recognition principle

A cost allocation process

Accrued revenues

Divides the economic life of a business into artificial time periods

Prepaid expenses

A contra asset account

Bookvalue

Cost less accumulated depreciation

Time period assumption

Expenses paid before they are incurred

Accrued expenses

A twelve month accounting period

Fiscal year

Efforts are related to accomplishments

Accumulated depreciation

Revenues recognized but not yet received

Expense recognition principle

Expenses incurred but not yet paid

Depreciation

Premises:

Recognition of revenue when the performance obligation is satisfied

A cost allocation process

Divides the economic life of a business into artificial time periods

A contra asset account

Cost less accumulated depreciation

Expenses paid before they are incurred

A twelve month accounting period

Efforts are related to accomplishments

Revenues recognized but not yet received

Expenses incurred but not yet paid

Responses:

Revenue recognition principle

Accrued revenues

Prepaid expenses

Bookvalue

Time period assumption

Accrued expenses

Fiscal year

Accumulated depreciation

Expense recognition principle

Depreciation

Correct Answer:

Premises:

Responses:

Recognition of revenue when the performance obligation is satisfied

A cost allocation process

Divides the economic life of a business into artificial time periods

A contra asset account

Cost less accumulated depreciation

Expenses paid before they are incurred

A twelve month accounting period

Efforts are related to accomplishments

Revenues recognized but not yet received

Expenses incurred but not yet paid