Match the Following Terms with the Appropriate Definition

question 90

Multiple Choice

Match the following terms with the appropriate definition.
-     Time period principle 

• A) The expense created by allocating the cost of plant and equipment to the periods in which they are used 
• B) The principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses 
• C) Items paid for in advance of receiving their benefits 
• D) Allocates equal amounts of an asset's cost (less any salvage value) to depreciation expense during its useful life 
• E) The accounting system that recognizes revenues when earned and expenses when incurred 
• F) A principle that assumes that an organization's activities can be divided into specific time periods such as months, quarters or years 
• G) Revenues earned in a period that are both unrecorded and not yet received in cash or other assets 
• H) Net income divided by net sales 
• I) The accounting system where revenues are recognized when cash is received and expenses are recorded when cash is paid 

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Definitions:

Net Energy Ratio

The ratio of the amount of useful energy produced by an energy system to the amount of energy expended to produce it.

Net Energy Ratio

A measure comparing the amount of energy required to produce energy to the amount of energy produced, indicating the efficiency of energy production.

Space Heating

The process of providing heat to interior spaces for the purpose of ensuring comfort for occupants, typically accomplished through systems such as furnaces, heat pumps, or radiators.

Net Energy

The amount of energy available after subtracting the energy expended to obtain and use that energy.