Matching
Match the following definitions with the terms.
Premises:
An exchange of value between two parties.
The principle that requires a business to be accounted for separately from its owners.
A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
The cost of assets or services used to earn revenue.
Creditor's claims on assets.
A financial statement that reports the changes in retained earnings over the reporting period; adjusted for increases from net income and for decreases such as dividends or net loss.
The principle that assumes transactions and events can be expressed in money units.
The relation between a company's assets, liabilities and equity.
The principle that revenue is recognized when earned.
Responses:
Revenue recognition principle
Accounting equation
Expenses
Statement of cash flows
Business entity principle
Statement of retained earnings
Monetary unit principle
Business transaction
Liabilities
Correct Answer:
Premises:
Responses:
An exchange of value between two parties.
The principle that requires a business to be accounted for separately from its owners.
A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
The cost of assets or services used to earn revenue.
Creditor's claims on assets.
A financial statement that reports the changes in retained earnings over the reporting period; adjusted for increases from net income and for decreases such as dividends or net loss.
The principle that assumes transactions and events can be expressed in money units.
The relation between a company's assets, liabilities and equity.
The principle that revenue is recognized when earned.
Premises:
An exchange of value between two parties.
The principle that requires a business to be accounted for separately from its owners.
A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
The cost of assets or services used to earn revenue.
Creditor's claims on assets.
A financial statement that reports the changes in retained earnings over the reporting period; adjusted for increases from net income and for decreases such as dividends or net loss.
The principle that assumes transactions and events can be expressed in money units.
The relation between a company's assets, liabilities and equity.
The principle that revenue is recognized when earned.
Responses:
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