Match the Following Terms with the Appropriate Definition

question 382

Multiple Choice

Match the following terms with the appropriate definition.
-The accounting system that recognizes revenue when cash is received and records expenses when cash is paid.

• A)Accrued revenues
• B)Expense recognition (matching) principle
• C)Cash basis accounting
• D)Depreciation
• E)Accrual basis accounting
• F)Interim financial statements
• G)Straight-line depreciation
• H)Time period assumption
• I)Fiscal year

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping organizations manage their liquidity and cash reserves.

Management Use

Management use typically refers to information or resources utilized by the management team for decision-making and strategic planning purposes.

June Cash Budget

A financial plan that estimates the cash inflows and outflows for a business during the month of June, aiding in managing liquidity.

Cash Receipts

Money received by a business or individual, often recorded in the financial records to track income.