Question

Match each definition with its related term by selecting the appropriate letter in the drop down provided. There should be only one definition per term. (that is, there are more definitions than terms.)
Definitions:
A. Report the long life of a company in shorter periods.
B. Record expenses when incurred in earning revenue.
C. The time it takes to purchase goods or services from suppliers, sell goods or services to customers, and collect cash from customers.
D. Record revenues when earned and expenses when incurred.
E. Increases in assets or decreases in liabilities from peripheral transactions.
F. An asset account used to record cash paid before expenses have been incurred.
G. Record revenues when earned and measurable (when the company transfers promised goods or services to customers, and in the amount the company expects to receive).
H. Decreases in assets or increases in liabilities from peripheral transactions.
I. Record revenues when received and expenses when paid.
J. The income statement equation.
K. Decreases in assets or increases in liabilities from central ongoing operations.
L. The retained earnings equation.
M. A liability account used to record cash received before revenues have been earned.
1. Expenses
2. Gains
3. Revenue recognition principle
4. Cash basis accounting
5. Unearned revenue
6. Operating cycle
7. Accrual basis accounting
8. Prepaid expenses
9. Revenues − Expenses = Net Income
10. Ending Retained Earnings = Beginning Retained Earnings + Net Income − Dividends Declared

Answer 1

Answer:

A. Going concern

B. Accrual Basis accounting

C. Operating Cycle

D. Cash Basis Accounting

E. Gains

F. Prepaid Expense

G. Revenue recognition principle

H. Expenses

I. Cash basis Accounting

J. Revenue - Expenses = Net Income

K. Expense

L. Ending Retained Earning = Beginning Retained Earning + Net Income - Dividends Declared

M. Unearned Revenue

Explanation:

The definitions for each letter are matched with the accounting terms. The unearned revenue account is used to record the revenue received but services yet to be delivered. This is a liability account in which the company reports any unearned revenue.