Homework Help is Here – Start Your Trial Now!
Business
Accounting
Concept Description 1. Cash-basis accounting. 2. Fiscal year. 3. Revenue recognition principle. Recognize revenue in the accounting period in which a performance obligation is satisfied 4. Expense recognition principle.

Concept Description 1. Cash-basis accounting. 2. Fiscal year. 3. Revenue recognition principle. Recognize revenue in the accounting period in which a performance obligation is satisfied 4. Expense recognition principle.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Use the list of concepts given to match the description of the concept to the concept.
Accountants divide the economic life of a business into artificial time periods An accounting time period that is one year in length / Companies record transactions in the period in which the events occur Recognize revenue in the accounting period in which a performance obligation is satisfied Efforts (expenses) should be recognized in the period in which a company uses assets or incurs liabilities to generate accomplishments (revenues). An accounting time period that starts on January 1 and ends on December 31 Companies record revenues when they receive cash and record expenses when they pay out cash Monthly and quarterly time periods
Transcribed Image Text:Accountants divide the economic life of a business into artificial time periods An accounting time period that is one year in length / Companies record transactions in the period in which the events occur Recognize revenue in the accounting period in which a performance obligation is satisfied Efforts (expenses) should be recognized in the period in which a company uses assets or incurs liabilities to generate accomplishments (revenues). An accounting time period that starts on January 1 and ends on December 31 Companies record revenues when they receive cash and record expenses when they pay out cash Monthly and quarterly time periods
Concept Description Cash-basis accounting. dy. 2. Fiscal year. 3. Revenue recognition principle. Recognize revenue in the accounting period in which a performance obligation is satisfied 4. Expense recognition principle.
Transcribed Image Text:Concept Description Cash-basis accounting. dy. 2. Fiscal year. 3. Revenue recognition principle. Recognize revenue in the accounting period in which a performance obligation is satisfied 4. Expense recognition principle.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Basic Accounting Terms
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS