Chapter 3, Problem 3.2E

Matching Definitions with Terms

Match each definition with its related term by entering the appropriate letter in the space provided.

Term	Definition
___1. Accrual basis accounting	A. Record expenses when incurred in earning revenue.
___2. Expense recognition principle	B. Record revenues when earned, not necessarily when cash is received.
___3. Revenue recognition principle	C. Record revenues when received and expenses when paid.
____4. Cash basis accounting	D. Record revenues when earned and expenses when incurred.