Match the Following Terms with the Appropriate Definition

question 192

Multiple Choice

Match the following terms with the appropriate definition.
-     Accrued revenues 

• 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 

Identify and correct common types of accounting errors that affect the trial balance.

Comprehend the process of journalizing and posting transactions in the ledger.

Understand the structure and purpose of the chart of accounts.

Recognize the implications of errors in the trial balance and know methods to locate and rectify them.

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Definitions:

Planning Process

A systematic approach to defining objectives, developing strategies, and outlining the steps necessary to achieve the desired outcomes.

Business-related Purpose

An intention or objective that pertains to the interests or operations of a business.

Email Policies

Guidelines or rules set by an organization regarding the use and management of email communication by its employees.

Personal Messages

Individualized communications directed at a specific person or group, often conveying private or sensitive information.