Reference no: EM131138818
Numerous timing concepts are discussed on pages 96 and 97. A list of concepts is provided below, on the left, with a description of the concept on the right. There are more descriptions provided than concepts. Match the description of the concept to the concept.
1. ____ Cash basis accounting.
2. ____ Fiscal year.
3. ____ Revenue recognition principle.
4. ____ Matching principle.
(a) Monthly and quarterly time periods.
(b) Accountants divide the economic life of a business into artificial time periods.
(c) Efforts (expenses) should be matched with accomplishments (revenues).
(d) Companies record revenues when they receive cash and record expenses when they pay out cash.
(e) An accounting time period that is one year in length.
(f) An accounting time period that starts on January 1 and ends on December 31.
(g) Companies record transactions in the period in which the events occur.
(h) Recognize revenue in the accounting period in which it is earned.
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: Numerous timing concepts are discussed on pages 96 and 97. A list of concepts is provided below, on the left, with a description of the concept on the right.
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