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Match the Following Definitions with the Terms 1 Through 9

Question 48

Matching

Match the following definitions with the terms 1 through 9.Place the letter that identifies the best definition in the blank space next to the term.

Premises:
An exchange of value between two parties.
The principle that assumes transactions and events can be expressed in money units.
The cost of assets or services used to earn revenue.
The relation between a company's assets, liabilities and equity.
A financial statement that reports the changes in retained earnings over the reporting period; adjusted for increases from net income and for decreases such as dividends or net loss.
Creditor's claims on assets.
The principle that revenue is recognized when earned.
The principle that requires a business to be accounted for separately from its owners.
A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing and financing activities.
Responses:
Business transaction
Revenue recognition principle
Statement of cash flows
Monetary unit principle
Business entity principle
Expenses
Liabilities
Statement of retained earnings
Accounting equation

Correct Answer:

An exchange of value between two parties.
The principle that assumes transactions and events can be expressed in money units.
The cost of assets or services used to earn revenue.
The relation between a company's assets, liabilities and equity.
A financial statement that reports the changes in retained earnings over the reporting period; adjusted for increases from net income and for decreases such as dividends or net loss.
Creditor's claims on assets.
The principle that revenue is recognized when earned.
The principle that requires a business to be accounted for separately from its owners.
A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing and financing activities.
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