Question

Match the accounting term with the corresponding definition.

Answer 1

Answer:

a. An account whose normal balance is opposite of its companion account  - 5. Contra-account

b. Entry made to assign revenues to the period in which they are earned and  - 3. Adjusting entry expenses to the period in which they are incurred

c. A list of accounts with their adjusted balances  - 2. Adjusted trial balance

d. The cumulative sum of all depreciation recorded for an asset  - 1. Accumulated depreciation

e. The allocation of a long-term asset's cost to expense over its useful life  - 6. Depreciation

f. The asset's cost less its accumulated depreciation  - 4. Book value

g. Long-lived asset used to operate the business - 7. Long-term asset

Explanation:

• An account whose normal balance is opposite of its companion account . These are Contra-accounts. Therefore a matches 5.

• Entry made to assign revenues to the period in which they are earned and  adjusting entry expenses to the period in which they are incurred. This is called matching concept. Therefore b matches 3.

• A list of accounts with their adjusted balances  is known as the Adjusted trial balance. Therefore c matches 2.

• The cumulative sum of all depreciation recorded for an asset  gives the Accumulated depreciation. Therefore d matches 1.

• The allocation of a long-term asset's cost to expense over its useful life  is the Depreciation of the asset. Therefore e matches 6.

• The asset's cost less its accumulated depreciation  gives the asset Net Book value. Therefore f matches 4.

• Long-lived asset used to operate the business are called Long-term asset. These are usually used for more than a year. Therefore g matches 7.