Solved

Match the Term and the Definition

Question 137

Matching

Match the term and the definition.There are more definitions than terms.

Premises:

Responses:

expenditure

When line items are broken down into their component subcategories.

capitalize

The concept that revenue should be recorded when earned

net income

Any use or sacrifice of a company's resources to generate revenue.

core activities

To reduce the recorded value of an asset to reflect its true market value.

accrual basis

The secondary or peripheral activities of a company.

revenue recognition principle

Total revenue minus total expenses.

expense

Also known as operating income.

deferred revenue

Payments received for goods that have not yet been delivered or services that have not yet been performed.

The concept that a company should record revenue during the same period as expenses.

Any outlay of money by a company whether related to production or not.

The concept that revenue and expenses should be recorded at the time received or paid.

Revenues should be recorded when they are earned and expenses when they are incurred.

The main business activities of a company.

When a cost is reported as an asset on the balance sheet.

The increase in value of financial assets held by a company.

Premises:

expenditure

capitalize

net income

core activities

accrual basis

revenue recognition principle

expense

deferred revenue

Responses:

When line items are broken down into their component subcategories.

The concept that revenue should be recorded when earned

Any use or sacrifice of a company's resources to generate revenue.

To reduce the recorded value of an asset to reflect its true market value.

The secondary or peripheral activities of a company.

Total revenue minus total expenses.

Also known as operating income.

Payments received for goods that have not yet been delivered or services that have not yet been performed.

The concept that a company should record revenue during the same period as expenses.

Any outlay of money by a company whether related to production or not.

The concept that revenue and expenses should be recorded at the time received or paid.

Revenues should be recorded when they are earned and expenses when they are incurred.

The main business activities of a company.

When a cost is reported as an asset on the balance sheet.

The increase in value of financial assets held by a company.

Correct Answer:

Premises:

Responses:

When line items are broken down into their component subcategories.

The concept that revenue should be recorded when earned

Any use or sacrifice of a company's resources to generate revenue.

To reduce the recorded value of an asset to reflect its true market value.

The secondary or peripheral activities of a company.

Total revenue minus total expenses.

Also known as operating income.

Payments received for goods that have not yet been delivered or services that have not yet been performed.

The concept that a company should record revenue during the same period as expenses.

Any outlay of money by a company whether related to production or not.

The concept that revenue and expenses should be recorded at the time received or paid.

Revenues should be recorded when they are earned and expenses when they are incurred.

The main business activities of a company.

When a cost is reported as an asset on the balance sheet.

The increase in value of financial assets held by a company.