Match Each Statement to the Item Listed Below

question 154

Multiple Choice

Match each statement to the item listed below
-States that revenues should be recorded in the period in which it is earned

• A)Accrual basis accounting
• B)Adjusted trial balance
• C)Adjusting entries
• D)Cash basis accounting
• E)Contra accounts
• F)Depreciation
• G)Matching principle
• H)Revenue recognition principle
• I)Time period assumption
• J)Worksheet

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Definitions:

Accrual

Accrual accounting is an accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transaction occurs.

Footnote Disclosure

Additional notes included in financial statements to provide more detailed information about the company's fiscal status, accounting policies, or individual line items.

Contingencies

Conditions or events with uncertain outcomes that may represent potential liabilities and are recorded in financial statements if they are probable and estimable.

Sick Pay Policy

A company's formal plan detailing the compensation employees receive when they are unable to work due to illness.