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Match the Description with the Accounting Terms

Question 89

Matching

Match the description with the accounting terms.

Premises:

Responses:

Income received before it is earned

Prepaid expenses

Income that has been earned but not yet received and recorded

Accrued income

Expenses that are paid for and recorded before they are used, such as rent or insurance

Net income or Net loss

Expense items that relate to the current period but have not yet been paid and do not yet appear in the accounting records

Unearned income

Long-term assets that are used in the operation of a business and that are subject to depreciation (except for land, which is not depreciated)

Inventory sheet

Another term for prepaid expenses

Property, plant, and equipment

A system of accounting by which all revenues and expenses are matched and reported on financial statements for the applicable period, regardless of when the cash related to the transaction is received or paid

Accrual basis

The difference between the debit and credit columns of the Income Statement and the debit and credit columns of the Balance Sheet on the worksheet.

Updated account balances

A form used to list the volume and type of goods a firm has in stock

Deferred expenses

Another term for unearned income

Deferred income

The amounts entered in the Adjusted Trial Balance section of the worksheet

Accrued expenses

Premises:

Income received before it is earned

Income that has been earned but not yet received and recorded

Expenses that are paid for and recorded before they are used, such as rent or insurance

Expense items that relate to the current period but have not yet been paid and do not yet appear in the accounting records

Long-term assets that are used in the operation of a business and that are subject to depreciation (except for land, which is not depreciated)

Another term for prepaid expenses

The difference between the debit and credit columns of the Income Statement and the debit and credit columns of the Balance Sheet on the worksheet.

A form used to list the volume and type of goods a firm has in stock

Another term for unearned income

The amounts entered in the Adjusted Trial Balance section of the worksheet

Responses:

Prepaid expenses

Accrued income

Net income or Net loss

Unearned income

Inventory sheet

Property, plant, and equipment

Accrual basis

Updated account balances

Deferred expenses

Deferred income

Accrued expenses

Correct Answer:

Premises:

Responses:

Income received before it is earned

Income that has been earned but not yet received and recorded

Expenses that are paid for and recorded before they are used, such as rent or insurance

Expense items that relate to the current period but have not yet been paid and do not yet appear in the accounting records

Long-term assets that are used in the operation of a business and that are subject to depreciation (except for land, which is not depreciated)

Another term for prepaid expenses

The difference between the debit and credit columns of the Income Statement and the debit and credit columns of the Balance Sheet on the worksheet.

A form used to list the volume and type of goods a firm has in stock

Another term for unearned income

The amounts entered in the Adjusted Trial Balance section of the worksheet