Match the Term and the Explanation

question 178

Multiple Choice

Match the term and the explanation.There are more definitions than terms.
-Cash Basis

• A)The concept that expenses should be reported at the same time as the related revenue.
• B)Reported when a company sells goods or services in the ordinary course of business for more than it costs to produce.
• C)A company's policy on when to report revenue in the financial statements.
• D)A ratio that indicates the percent of each revenue dollar that is left over after covering costs and expenses.
• E)Reporting expenses and revenue according to the time the underlying activities occur.
• F)A liability account indicating customers have already paid for services not yet rendered.
• G)The principle that changes in assets must be matched by changes in liabilities and equity.
• H)An indication that a company has already paid a cost not yet incurred.
• I)A list of account balances when the accounts do not yet include all revenues and expenses.
• J)Also known as net assets,this is the value of assets minus liabilities.
• K)Reporting expenses and revenues according to the time the money is paid or received.

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Definitions:

Perceived Benefits

The advantages or positive outcomes that consumers believe they will receive from a product or service.

Price-Quality Relationship

The perceived correlation between the price of a product and its quality, where higher-priced items are often believed to be of better quality.

Reference Value

A benchmark or standard used for comparison in evaluating the performance or quality of something.

Price Elasticity

A measure of how sensitive the quantity demanded of a good or service is to a change in its price, indicating how changes in price affect sales volume.