Match the Term and the Explanation

question 6

Essay

Match the term and the explanation.There are more definitions than terms.
TERM
1._____ Cash Basis
2._____ Net Profit Margin
3._____ Unadjusted Trial Balance
4._____ Prepaid Expense
5._____ Unearned Revenue
6._____ Revenue Recognition Principle
7._____ Expense Recognition Principle
DEFINITION
A.Reported when a company sells goods or services in the ordinary course of business for more than it costs to produce.
B.Reporting expenses and revenue according to the time the underlying activities occur.
C.A list of account balances when the accounts do not yet include all revenues and expenses.
D.The concept that expenses should be reported at the same time as the related revenue.
E.The principle that changes in assets must be matched by changes in liabilities and equity.
F.Also known as net assets,this is the value of assets minus liabilities.
G.An indication that a company has already paid a cost not yet incurred.
H.A company's policy on when to report revenue in the financial statements.
I.Reporting expenses and revenues according to the time the money is paid or received.
J.A liability account indicating customers have already paid for services not yet rendered.
K.A ratio that indicates the percent of each revenue dollar that is left over after covering costs and expenses.

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Definitions:

Photosynthesize

The process by which green plants, algae, and certain bacteria convert light energy into chemical energy, producing oxygen as a byproduct.

Grana

Stacks of thylakoids in the chloroplasts of plant cells, where photosynthesis takes place.

Autotrophs

Organisms capable of producing their own food from inorganic substances using light or chemical energy, such as plants and some bacteria.