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Match the Following Terms with the Appropriate Definition

Question 294

Matching

Match the following terms with the appropriate definition

Premises:

Responses:

Statement of cash flows

The relation between a company's assets, liabilities, and equity.

Events

Happenings, such as changes in market value, that effect the accounting equation and are reliably measured.

Monetary unit principle

The principle that assumes transactions and events can be expressed in money units.

Business entity principle

Describes a company's revenues and expenses along with the resulting net income or loss over a period of time.

Revenue recognition principle

A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.

Accounting equation

Creditor's claims on assets.

Income statement

The cost of assets or services used to earn revenue.

Expenses

The principle that requires a business to be accounted for separately from its owners.

Liabilities

The principle that revenue is recorded when earned through providing goods or services.

Premises:

Statement of cash flows

Events

Monetary unit principle

Business entity principle

Revenue recognition principle

Accounting equation

Income statement

Expenses

Liabilities

Responses:

The relation between a company's assets, liabilities, and equity.

Happenings, such as changes in market value, that effect the accounting equation and are reliably measured.

The principle that assumes transactions and events can be expressed in money units.

Describes a company's revenues and expenses along with the resulting net income or loss over a period of time.

A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.

Creditor's claims on assets.

The cost of assets or services used to earn revenue.

The principle that requires a business to be accounted for separately from its owners.

The principle that revenue is recorded when earned through providing goods or services.

Correct Answer:

Premises:

Responses:

Statement of cash flows

Events

Monetary unit principle

Business entity principle

Revenue recognition principle