Match the Items Below by Entering the Appropriate Code Letter

question 42

Short Answer

Match the items below by entering the appropriate code letter in the space provided.
A. Time period assumption
B. Fiscal year G. Depreciation
C. Revenue recognition principle
D. Prepaid expenses
E. Matching principle
F. Accrued revenues
H. Accumulated depreciation
I. Accrued expenses
J. Book value
1. A twelve month accounting period
2. Expenses paid before they are incurred
3. Cost less accumulated depreciation
4. Divides the economic life of a business into artificial time periods
5. Efforts are related to accomplishments
6. A contra asset account
7. Recognition of revenue when it is recorded when earned
8. Revenues earned but not yet received
9. Expenses incurred but not yet paid
10. A cost allocation process
Answers to Matching

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Definitions:

Straight-Line Depreciation

A strategy for allocating the outlay of a tangible asset through its service duration in equivalent yearly installments.

Straight-Line Depreciation

An accounting method that evenly spreads the expense of an asset over its expected lifespan.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of maximizing shareholder value.

After-Tax Discount Rate

A rate used in financial calculations that represents the net cost or benefit of an investment after considering the effects of taxes.