Match the Term and the Explanation

question 72

Short Answer

Match the term and the explanation.There are more definitions than terms.
_____ cash basis
_____ net resources
_____ unadjusted trial balance
_____ prepaid expense
_____ loss
_____ unearned revenue
_____ revenue recognition policy
_____ gain
_____ matching principle
A.Reported when a company sells goods or services in the ordinary course of business for more than it cost to produce.
B.Reporting expenses and revenue according to the time the underlying activities occur.
C.Reported when a clothing company sells land for more than its book value.
D.Reported when a clothing company sells land for less than its book value.
E.A list of account balances when the accounts do not yet include all revenues and expenses.
F.The concept that expenses should be reported at the same time as the related revenue.
G.Also known as the accounting period,it is the interval of time covered by the financial statements.
H.An asset account indicating customers have already paid for goods not yet received.
I.The principle that changes in assets must be matched by changes in liabilities.
J.Also known as net assets,this is the value of assets minus liabilities.
K.An asset account indicating a company has already paid a cost not yet incurred.
L.A company's policy on when to report revenue in the financial statements.
M.A liability account indicating a company has already paid a cost not yet incurred.
N.Reporting expenses and revenues according to the time the cash is paid or received.
O.A liability account indicating customers have already paid for goods not yet received.
P.Means a financial statement does not balance.

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Definitions:

Profit Maximisation

The process of increasing a company's profits to the highest possible level given its constraints.

Occupational Health

A field focused on the prevention and management of workplace hazards and diseases to ensure employee well-being and productivity.

Environmental Protection

Efforts and policies aimed at preserving the health of the natural environment against pollution and degradation.

Cultural Relativism

A principle that suggests the beliefs and activities of a society should be understood based on that society's own context rather than judged against the criteria of another.