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Match the Description with the Accounting Terms

Question 94

Matching

Match the description with the accounting terms.

Premises:

Responses:

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)

Accrual basis

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

Accrued expenses

Another term for unearned income

Accrued income

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

Deferred expenses

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

Deferred income

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

Inventory sheet

Another term for prepaid expenses

Net income or Net loss

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

Prepaid expenses

Income that has been earned but not yet received and recorded

Property, plant, and equipment

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.

Unearned income

Income received before it is earned

Updated account balances

Premises:

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)

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

Another term for unearned income

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

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

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

Another term for prepaid expenses

Income that has been earned but not yet received and recorded

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.

Income received before it is earned

Responses:

Accrual basis

Accrued expenses

Accrued income

Deferred expenses

Deferred income

Inventory sheet

Net income or Net loss

Prepaid expenses

Property, plant, and equipment

Unearned income

Updated account balances

Correct Answer:

Premises:

Responses:

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)

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

Another term for unearned income

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

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

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

Another term for prepaid expenses

Income that has been earned but not yet received and recorded

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.

Income received before it is earned