Match each concept with the definition that best describes it. Expense recognition principle (matching [ Choose] principle) Choose) Accounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur. Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash. The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied. Information that accurately depicts what really happened. The principle that companies recognize expense in the period in which they make efforts (consume assets or incur liabilities) to generate revenue. An assumption that accountants can divide the economic life of a business into artificial time periods. Revenue recognition principle Time period assumption Monthly or quarterly accounting time periods. An accounting period that extends from January 1 to December 31. Calendar year [ Choose ] Cash-basis accounting [ Choose ] Accrual-basis accounting [ Choose ]
Match each concept with the definition that best describes it. Expense recognition principle (matching [ Choose] principle) Choose) Accounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur. Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash. The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied. Information that accurately depicts what really happened. The principle that companies recognize expense in the period in which they make efforts (consume assets or incur liabilities) to generate revenue. An assumption that accountants can divide the economic life of a business into artificial time periods. Revenue recognition principle Time period assumption Monthly or quarterly accounting time periods. An accounting period that extends from January 1 to December 31. Calendar year [ Choose ] Cash-basis accounting [ Choose ] Accrual-basis accounting [ Choose ]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Match each concept with the definition that best describes it.
Expense recognition principle (matching
[ Choose]
principle)
[ Choose ]
Accounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur.
Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash.
The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied.
Information that accurately depicts what really happened.
The principle that companies recognize expense in the period in which they make efforts (consume assets or incur liabilities) to generate revenue.
An assumption that accountants can divide the economic life of a business into artificial time periods.
Monthly or quarterly accounting time periods.
An accounting period that extends from January 1 to December 31.
Revenue recognition principle
Time period assumption
Calendar year
[ Choose ]
Cash-basis accounting
[ Choose ]
Accrual-basis accounting
[ Choose ]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda704709-c32b-4e3a-9fcd-440b5249bce8%2Fd4bbc26e-4a4f-4001-9859-542f06e7b079%2Fl5u2pms_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Match each concept with the definition that best describes it.
Expense recognition principle (matching
[ Choose]
principle)
[ Choose ]
Accounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur.
Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash.
The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied.
Information that accurately depicts what really happened.
The principle that companies recognize expense in the period in which they make efforts (consume assets or incur liabilities) to generate revenue.
An assumption that accountants can divide the economic life of a business into artificial time periods.
Monthly or quarterly accounting time periods.
An accounting period that extends from January 1 to December 31.
Revenue recognition principle
Time period assumption
Calendar year
[ Choose ]
Cash-basis accounting
[ Choose ]
Accrual-basis accounting
[ Choose ]
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