Match the descriptions with their terms :
-Events recorded only in periods the company receives or pays cash
A) Accounting period concept
B) Cash basis
C) Revenue recognition principle
D) Prepaid expenses
E) Matching principle
F) Accrued revenues
G) Depreciation
H) Post-closing trial balance
I) Accrued expenses
J) Carrying amount

Question

Quizplus · Accepted Answer

The description matches the cash basis of accounting, where revenues and expenses are recognized only when cash is received or paid, unlike the accrual basis which recognizes revenues when earned and expenses when incurred, regardless of cash flow.

Match the Descriptions with Their Terms