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Match the Following Definitions with the Terms 1 Through 9

Question 198

Matching

Match the following definitions with the terms 1 through 9.Place the letter that identifies the best definition in the blank space next to the term.

Premises:

Responses:

Events

A financial statement that lists cash inflows (receipts)and cash outflows (payments); the cash flows are arranged by operating,investing,and financing activities.

Statement of cash flows

The relation between a company's assets,liabilities,and equity.

Accounting equation

Describes a company's revenues and expenses along with the resulting net income or loss over a period of time.

Business entity principle

The principle that requires a business to be accounted for separately from its owners.

Revenue recognition principle

Happenings,such as changes in market value,that effect the accounting equation and are reliably measured.

Liabilities

The principle that revenue is recorded when earned through providing goods or services.

Income statement

The cost of assets or services used to earn revenue.

Monetary unit principle

The principle that assumes transactions and events can be expressed in money units.

Expenses

Creditor's claims on assets.

Premises:

Events

Statement of cash flows

Accounting equation

Business entity principle

Revenue recognition principle

Liabilities

Income statement

Monetary unit principle

Expenses

Responses:

A financial statement that lists cash inflows (receipts)and cash outflows (payments); the cash flows are arranged by operating,investing,and financing activities.

The relation between a company's assets,liabilities,and equity.

Describes a company's revenues and expenses along with the resulting net income or loss over a period of time.

The principle that requires a business to be accounted for separately from its owners.

Happenings,such as changes in market value,that effect the accounting equation and are reliably measured.

The principle that revenue is recorded when earned through providing goods or services.

The cost of assets or services used to earn revenue.

The principle that assumes transactions and events can be expressed in money units.

Creditor's claims on assets.

Correct Answer:

Premises:

Responses:

Events

Statement of cash flows

Accounting equation

Business entity principle

Revenue recognition principle

Liabilities

Income statement

Monetary unit principle

Expenses