Match the Following Terms with the Appropriate Definition

question 183

Multiple Choice

Match the following terms with the appropriate definition.
-     Straight-line depreciation 

• 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 

Comprehend the concept of ecological efficiency and its implications on energy transfer across trophic levels.

Identify the distribution and significance of freshwater sources.

Understand the dynamics of carbon transfer among nonbiological reservoirs.

Differentiate between biological and nonbiological reservoirs in biogeochemical cycles.

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Definitions:

Dividend Income

Money that a company pays to its shareholders out of its profits.

AMT Income

Alternative Minimum Tax (AMT) income is a method of calculating taxable income according to parallel tax rules to ensure that certain taxpayers pay at least a minimum amount of tax.

Corporation

A legal entity recognized by law as separate from its owners, capable of holding assets, incurring liabilities, and conducting business.

FMV

Fair Market Value (FMV) refers to the price at which an asset would sell in the marketplace under conditions where both buyer and seller have reasonable knowledge of the asset and are willing to trade without external pressures.