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Match the Following Terms with the Descriptions Below

Question 110

Matching

Match the following terms with the descriptions below.

Premises:

Responses:

An adjusting entry that occurs when expenses are incurred in one accounting period and payment is made in a later period.

Business event

An adjusting entry that recognizes when a revenue is earned but the payment to the firms will occur in a subsequent accounting period.

Revenue deferral

An entry made to transfer the balance of temporary accounts to retained earnings and determine net income or loss for a time period.

Closing entry

An adjusting entry that occurs when a company uses previously purchased assets in an attempt to generate revenue in future periods.

Revenue accrual

An adjusting entry that occurs when a company has been paid in advance for services to be performed in a future period.

Adjusting entry

An internal entry made to bring up to date the accounts for internal events prior to preparing financial statements.

Expense accrual

An organizational scheme used to classify accounts as assets, liabilities, or owners' equity.

Chart of accounts

An event that management wants to plan and evaluate.

Expense deferral

Premises:

An adjusting entry that occurs when expenses are incurred in one accounting period and payment is made in a later period.

An adjusting entry that recognizes when a revenue is earned but the payment to the firms will occur in a subsequent accounting period.

An entry made to transfer the balance of temporary accounts to retained earnings and determine net income or loss for a time period.

An adjusting entry that occurs when a company uses previously purchased assets in an attempt to generate revenue in future periods.

An adjusting entry that occurs when a company has been paid in advance for services to be performed in a future period.

An internal entry made to bring up to date the accounts for internal events prior to preparing financial statements.

An organizational scheme used to classify accounts as assets, liabilities, or owners' equity.

An event that management wants to plan and evaluate.

Responses:

Business event

Revenue deferral

Closing entry

Revenue accrual

Adjusting entry

Expense accrual

Chart of accounts

Expense deferral

Correct Answer:

Premises:

Responses:

An adjusting entry that occurs when expenses are incurred in one accounting period and payment is made in a later period.

An adjusting entry that recognizes when a revenue is earned but the payment to the firms will occur in a subsequent accounting period.

An entry made to transfer the balance of temporary accounts to retained earnings and determine net income or loss for a time period.

An adjusting entry that occurs when a company uses previously purchased assets in an attempt to generate revenue in future periods.

An adjusting entry that occurs when a company has been paid in advance for services to be performed in a future period.

An internal entry made to bring up to date the accounts for internal events prior to preparing financial statements.

An organizational scheme used to classify accounts as assets, liabilities, or owners' equity.

An event that management wants to plan and evaluate.