Match the Term and the Definition

question 130

Essay

Match the term and the definition.There are more definitions than terms.
TERM
1._____ Unearned Revenue
2._____ Revenue Recognition Principle
3._____ Accrual Basis
4._____ Time Period Assumption
5._____ Expense
6._____ Net Income
DEFINITION
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.The practice of dividing the life of the business into months and years.
D.The concept that revenue and expenses should be recorded at the time received or paid.
E.The concept that revenue should be recorded when earned,not necessarily when payment is received.
F.Revenues should be recorded when they are earned and expenses when they are incurred.
G.Total revenue minus total expenses.
H.Any use or sacrifice of a company's resources to generate revenue.
I.The increase in value of financial assets held by a company.
J.Payments received for goods that have not yet been delivered or services that have not yet been performed.
K.The concept that a company should record revenue during the same period as expenses.

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Definitions:

Kinked Demand Curve Model

An economic model suggesting that price competition among firms may be rigid because a firm raising its price does not lead to competitors following suit, while price decreases are matched. This results in a demand curve with a kink.

Marginal Revenue Curve

A graphical representation that shows the change in total revenue resulting from selling one additional unit of a good or service.

Least-Cost Producer

A producer that can provide goods or services at the lowest possible cost, often due to advantages in technology, processes, or access to resources.

Covert Collusion

An implicit or indirect agreement among competitors to fix prices, limit supply, or divide markets, without explicit communication or a formal agreement.