Match the Term and the Definition

question 219

Multiple Choice

Match the term and the definition.There are more definitions than terms.
-Time Period Assumption

• A)To reduce the recorded value of an asset to better reflect its true market value.
• B)Any outlay of money by a company for any purpose.
• C)Total revenue minus total expenses.
• D)The concept that revenue should be recorded when earned,not necessarily when payment is received.
• E)The increase in value of financial assets held by a company.
• F)The practice of dividing the life of the business into months and years.
• G)The concept that a company should record revenue during the same period as expenses.
• H)The concept that revenue and expenses should be recorded at the time received or paid.
• I)Payments received for goods that have not yet been delivered or services that have not yet been performed.
• J)Revenues should be recorded when they are earned and expenses when they are incurred.
• K)Any use or sacrifice of a company's resources to generate revenue.

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Definitions:

Producer Surplus

The disparity between the price at which sellers are prepared to offer a product and the actual selling price they get.

Consumer Surplus

The difference between the highest amount a consumer is willing to pay and the actual price paid.

Supply Shift

A change in the quantity of a good that suppliers are willing and able to sell at each price, represented by a shift of the supply curve to the left or right.

Producer Surplus

The difference between the amount a producer is willing to accept for a good and the actual amount received from its sale.