Match the Following Terms with the Appropriate Definition

question 128

Short Answer

Match the following terms with the appropriate definition.
A. Accrual basis accounting
B. Cash basis accounting
C. Fiscal year
D. Interim financial statements
E. Depreciation
F. Straight-line depreciation
G. Time period assumption
H. Expense recognition (matching) principle
I. Accrued revenues
_____ 1. Any 12 consecutive months or 52-week period that a company adopts for its annual reporting period.
2. A method that allocates equal amounts of an asset's cost (less any salvage value) to depreciation expense during its useful life.
_____ 3. Assumes that an organization's activities can be divided into specific time periods such as months, quarters, or years.
_____ 4. Aims to record expenses in the same accounting period as the revenues that are earned as a result of those expenses.
_____ 5. The accounting system that uses the adjusting process to recognize revenues when earned and expenses when incurred.
_____ 6. The process of allocating the costs of long-term assets to the income statement over their expected useful lives.
_____ 7. Revenues earned in a period that are both unrecorded and not yet received in cash or other assets.
_____ 8. The accounting system that recognizes revenue when cash is received and records expenses when cash is paid.
_____ 9. A set of financial statements that covers less than one year, typically one, three, or six months of activity.

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Definitions:

Fellow-Servant Rule

A legal doctrine that limits an employer's liability for injuries one employee causes to another under the theory that each employee accepts the risks associated with working alongside other employees.

Implied Assumption

An unstated understanding or expectation that underpins an agreement or relationship, not explicitly expressed.

Occupational Safety

The discipline focused on the welfare, health, and safety of people engaged in work or employment, aiming to mitigate workplace risks.

Health Act

Legislation pertaining to the provision, regulation, and administration of health services and practices within a specific jurisdiction.