Question

Match each definition with its related term by selecting the appropriate term in the dropdown provided. There should be only one definition per term (that is, there are more definitions than terms). (Select "None of these are correct" if there is no Term for the "Definition".) Term Definition A. Report the long life of a company in shorter periods. B. Record expenses when incurred in earning revenue. The time it takes to purchase goods or services from suppliers, sell goods or services to customers, and collect cash from customers. D. Record revenues when earned and expenses when incurred. E. Increases in assets or decreases in liabilities from peripheral transactions. F. An asset account used to record cash paid before expenses have been incurred. Record revenues when earned and measurable (when the company transfers promised goods or services to customers, and in the amount the company expects to receive). H. Decreases in assets or increases in liabilities from peripheral transactions. Record revenues when received and expenses when paid. J. The income statement equation. K. Decreases in assets or increases in liabilities from central ongoing operations. The retained earnings equation. M. A liability account used to record cash received before revenues have been earned.

Answer 1

A	Report the long life of a company in shorter periods	None of these are correct
B	Record expenses when incurred in earning revenue	None of these are correct
C	The time it takes to purchase goods or services from suppliers, sell goods or services to customers, and collect cash from customers	Operating cycle
D	Record revenues when earned and expenses when incurred.	Accrual basis accounting
E	Increases in assets or decreases in liabilities from peripheral transactions	Gains
F	An asset account used to record cash paid before expenses have been incurred	Prepaid expenses
G	Record revenues when earned and measurable (when the company transfers promised goods or services to customers, and in the amount the company expects to receive).	Revenue recognition principle
H	Decreases in assets or increases in liabilities from peripheral transactions	None of these are correct   (Answer is losses)
I	Record revenues when received and expenses when paid.	Cash basis accounting
J	The income statement equation.	Revenues − Expenses = Net Income
K	Decreases in assets or increases in liabilities from central ongoing operations.	Expenses
L	.The retained earnings equation.	Ending Retained Earnings = Beginning Retained Earnings + Net Income − Dividends Declared
M	A liability account used to record cash received before revenues have been earned.	Unearned revenue