Listed below are eight technical accounting terms introduced in this chapter:Realization principle CreditTime period principle Accounting periodMatching principle ExpensesNet income Accounting cycleEach of the following statements may (or may not) describe one of these technical terms. Foreach statement, indicate the term described, or answer “None” if the statement does not correctlydescribe any of the terms.a. The span of time covered by an income statement.b. The sequence of accounting procedures used to record, classify, and summarize accountinginformation.c. The traditional accounting practice of resolving uncertainty by choosing the solution thatleads to the lowest amount of income being recognized.d. An increase in owners’ equity resulting from profitable operations.e. The underlying accounting principle that determines when revenue should be recorded in theaccounting records.f. The type of entry used to decrease an asset or increase a liability or owners’ equity account.g. The underlying accounting principle of offsetting revenue earned during an accounting periodwith the expenses incurred in generating that revenue.h. The costs of the goods and services used up in the process of generating revenue.
Listed below are eight technical accounting terms introduced in this chapter:
Realization principle Credit
Time period principle Accounting period
Matching principle Expenses
Net income Accounting cycle
Each of the following statements may (or may not) describe one of these technical terms. For
each statement, indicate the term described, or answer “None” if the statement does not correctly
describe any of the terms.
a. The span of time covered by an income statement.
b. The sequence of accounting procedures used to record, classify, and summarize accounting
information.
c. The traditional accounting practice of resolving uncertainty by choosing the solution that
leads to the lowest amount of income being recognized.
d. An increase in owners’ equity resulting from profitable operations.
e. The underlying accounting principle that determines when revenue should be recorded in the
accounting records.
f. The type of entry used to decrease an asset or increase a liability or owners’ equity account.
g. The underlying accounting principle of offsetting revenue earned during an accounting period
with the expenses incurred in generating that revenue.
h. The costs of the goods and services used up in the process of generating revenue.
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