Question

Match each definition with its related term by selecting the appropriate botter in the drop down provided. There should be only one definition per term. (that is, there are more definitions than terma.) Definitions: A. Report the long life of a company in shorter periods. B. Record expenses when incurred in caming revenue The time it taken to purchase goods or services from suppliers, vol goods or services to customers, and collect cash from customer. D. revenues E. Increases in assets or decreases in abilities from peripheral transactions F. An asset account used when cash is paid before expenses have been incurred G. Record revenues when earned and measurable (when the company transfers promised goods or service to customers, and in the amount the company expects to receive) H. Decrease in assets or increases in abilities 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 L. The retained earings equation M. A liability account used when cash is received before revenues have been earned Definition Term 1 Expenses 2 Gains 3 Revenue recognition principle 4 Cash basis accounting 5 Uneamed revenue 6 Operating cycle 7 Accrual basis accounting B Prepaid expenses 9 Revenue - Expenses - Net Income 10 Ending Retained Eamings Beginning Retained Earnings Net Income - Dividends Declared

Answer 1

Solution -

1 Defination H&K E N 3 G 4 B & Сл M Term Expenses Gains Revenue Recognision Principle Cash Basis Accounting Unearned Revenue Operating Cycle Accrual Basis Accounting Prepaid Expense Revenue - Expenses = Net Income Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividend Declared 6 A&C 7 D 8 F 9 J 10 L