Matching -FAS

question 103

Multiple Choice

Matching
-FAS

• A) teratogen exposure
• B) MeCP2 mutation
• C) trinucleotide repeats
• D) phenylalanine buildup
• E) β-amyloid

Recognize the importance and implications of adjusting entries in financial reporting.

Distinguish between prepaid expenses and unearned revenues.

Understand how the matching principle applies to revenue and expense recognition.

Comprehend the differences between the cash basis and the accrual basis of accounting.

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Definitions:

Trading Securities

Short-term investments in debt or equity securities that a company intends to sell within a short period to generate profits on short-term price differences.

Comprehensive Income

Total non-owner changes in equity for a reporting period, which includes all recognized income and expenses, including those not included in the net income.

Unrealized Gain

The increase in value of an asset or investment that has not yet been sold for cash, and thus, the gain is not yet realized.

Available-for-Sale Investments

Financial assets not classified as held-to-maturity or trading securities, which can be sold in response to liquidity needs or changes in interest rates.