Match each definition with its related term by entering the appropriate letter in the space provided.
Term
____ 1. Expenses
____ 2. Matching principle
____ 3. Revenue principle
____ 4. Cash basis accounting
____ 5. Unearned Revenue
____ 6. Accrual basis accounting
____ 7. Prepaid Expenses
Definition
A. Record expenses when incurred in earning revenue.
B. Liability account used to record the obligation to provide future services or return
cash that has been received before revenues have been earned.
C. Costs that result when a company sacrifices resources to generate revenues.
D. Record revenues when earned, not necessarily when cash is received.
E. Record revenues when received and expenses when paid.
F. Type of asset account used to record the benefits obtained when cash is paid before
expenses are incurred.
G. Record revenues when earned and expenses when incurred.