Solved

Match Each of the Appropriate Definition with the Correct Term

Question 161

Matching

Match each of the appropriate definition with the correct term.

Premises:
Controls designed to fix errors
An accounting principle which requires that expenses should be recognized in the same period as the revenue they helped generate
An accounting assumption which requires that financial statement items be measured in monetary units
An accounting method in which revenues are recognized when earned and expenses recognized when incurred
Transactions in which the exchange of cash takes place before the revenue is earned or the expense incurred.
An accounting assumption which assumes that a company will continue to be in business in the future
An accounting principle which requires that financial statement items should be reported at their costs at the time of the transaction
Controls designed to prevent an error or irregularity
An accounting principle which requires that revenue should be recognized when it is earned
Transactions in which the revenue is earned or the expense is incurred before the exchange of cash
Procedures to find errors
An accounting method in which revenues are recognized when cash is collected and expenses are recognized when cash is disbursed
Responses:
accrual accounting
detective controls
going-concern assumption
accruals
matching principle
monetary-unit assumption
deferrals
corrective controls
revenue-recognition principle
cash-basis accounting
historical-cost principle
preventive controls

Correct Answer:

Controls designed to fix errors
An accounting principle which requires that expenses should be recognized in the same period as the revenue they helped generate
An accounting assumption which requires that financial statement items be measured in monetary units
An accounting method in which revenues are recognized when earned and expenses recognized when incurred
Transactions in which the exchange of cash takes place before the revenue is earned or the expense incurred.
An accounting assumption which assumes that a company will continue to be in business in the future
An accounting principle which requires that financial statement items should be reported at their costs at the time of the transaction
Controls designed to prevent an error or irregularity
An accounting principle which requires that revenue should be recognized when it is earned
Transactions in which the revenue is earned or the expense is incurred before the exchange of cash
Procedures to find errors
An accounting method in which revenues are recognized when cash is collected and expenses are recognized when cash is disbursed
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