Match the following terms with the appropriate definition.A. Accrual basis accountingB. Cash basis accountingC. Fiscal yearD. Interim financial statementsE. Depreciation F. Straight-line depreciationG. Time period assumptionH. Expense recognition (matching) principleI. Accrued revenues____ 1. Any 12 consecutive months or 52-week period that a company adopts for its annual reporting period.____ 2. A method that allocates equal amounts of an asset's cost (less any salvage value) to depreciation expense during its useful life.____ 3. Assumes that an organization's activities can be divided into specific time periods such as months, quarters, or years.____ 4. Aims to record expenses in the same accounting period as the revenues that are earned as a result of those expenses.____ 5. The

Question

accounting system that uses the adjusting process to recognize revenues when earned and expenses when incurred.____ 6. The process of allocating the costs of long-term assets to the income statement over their expected useful lives.____ 7. Revenues earned in a period that are both unrecorded and not yet received in cash or other assets.____ 8. The accounting system that recognizes revenue when cash is received and records expenses when cash is paid.____ 9. A set of financial statements that covers less than one year, typically one, three, or six months of activity.

What will be an ideal response?

Answer 1

1. C; 2. F; 3. G; 4. H; 5. A; 6. E; 7. I; 8. B; 9. D