Matching
Match the items below by entering the appropriate code letter in the space provided.
Premises:
A cost allocation process
Events recorded only in periods the company receives or pays cash
Revenues earned but not yet received
Revenue is recognized when the performance obligation is satisfied.
Expenses paid before they are incurred
Cost less accumulated depreciation
Expenses incurred but not yet paid
Includes only permanent—balance sheet—accounts
Efforts are related to accomplishments
The economic life of a business can be divided into artificial time periods
Responses:
Prepaid expenses
Accrued expenses
Revenue recognition principle
Periodicity assumption
Accrued revenues
Depreciation
Cash basis
Book value
Expense recognition principle
Post-closing trial balance
Correct Answer:
Premises:
Responses:
A cost allocation process
Events recorded only in periods the company receives or pays cash
Revenues earned but not yet received
Revenue is recognized when the performance obligation is satisfied.
Expenses paid before they are incurred
Cost less accumulated depreciation
Expenses incurred but not yet paid
Includes only permanent—balance sheet—accounts
Efforts are related to accomplishments
The economic life of a business can be divided into artificial time periods
Premises:
A cost allocation process
Events recorded only in periods the company receives or pays cash
Revenues earned but not yet received
Revenue is recognized when the performance obligation is satisfied.
Expenses paid before they are incurred
Cost less accumulated depreciation
Expenses incurred but not yet paid
Includes only permanent—balance sheet—accounts
Efforts are related to accomplishments
The economic life of a business can be divided into artificial time periods
Responses:
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