Match the following terms with the appropriate definition.

Question

A) The principle that requires a business to be accounted for separately from its owners.
B) Happenings, such as changes in market value, that effect the accounting equation and are reliably measured.
C) The relation between a company's assets, liabilities, and equity.
D) A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
E) Creditor's claims on assets.
F) The principle that assumes transactions and events can be expressed in money units.
G) Describes a company's revenues and expenses along with the resulting net income or loss over a period of time.
H) The cost of assets or services used to earn revenue.
I) The principle that revenue is recorded when earned through providing goods or services.


1. Statement of cash flows
2. Events
3. Monetary unit principle
4. Business entity principle
5. Revenue recognition principle
6. Accounting equation
7. Income statement
8. Expenses
9. Liabilities

Answer 1

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