Match the Following Definitions with the Terms 1 Through 9

question 214

Short Answer

Match the following definitions with the terms 1 through 9. Place the letter that identifies the best definition in the blank space next to the term.
1. Statement of cash flows
____ 2. Events
3. Monetary unit principle
____ 4. Business entity principle
____ 5. Revenue recognition principle
____ 6. Accounting equation
7. Income statement
____ 8. Expenses
9. Liabilities
a. The relation between a company's assets, liabilities, and equity.
b. Happenings, such as changes in market value, that effect the accounting equation and are reliably measured.
c. The principle that assumes transactions and events can be expressed in money units.
d. Describes a company's revenues and expenses along with the resulting net income or loss over a period of time.
e. A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
f. Creditor's claims on assets.
g. The cost of assets or services used to earn revenue.
h. The principle that requires a business to be accounted for separately from its owners.
i. The principle that revenue is recorded when earned through providing goods or services.

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