Read each definition on the next page and then write the number of that definition in the

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Question:

Read each definition on the next page and then write the number of that definition in the blank beside the appropriate term it defines.

_____ Recognition____ Unearned revenue

____ Historical cost Accrual

____ Realizable value_ Accrued liability

____ Cash basis Accrued asset

Accrual basis Accounting cycle

____ Revenues_____ Work sheet

_____ Expenses Permanent accounts

Adjusting entries__ Temporary accounts

Straight-line method Closing entries

_____ Contra account_ Prepaid expense

Interim statement

1.A device used at the end of the period to gather the information needed to prepare financial statements without actually recording and posting adjusting entries.

2.Inflows or other enhancements of assets or settlements of liabilities from delivering or producing goods, rendering services, or other activities.

3.Journal entries made at the end of a period by a company using the accrual basis of accounting.

4.Journal entries made at the end of the period to return the balance in all temporary accounts to zero and transfer the net income or loss and the dividends of the period to Retained Earnings.

5.A liability resulting from the receipt of cash before the recognition of revenue.

6.The name given to balance sheet accounts because they are permanent and are not closed at the end of the period.

7.An asset resulting from the recognition of a revenue before the receipt of cash.

8The amount of cash, or its equivalent, that could be received by selling an asset currently.

9.The assignment of an equal amount of depreciation to each period.

10.A series of steps performed each period and culminating with the preparation of a set of financial statements.

11.A system of accounting in which revenues are recognized when earned and expenses when incurred.

12.Cash has not yet been paid or received, but expense has been incurred or revenue earned.

13.Financial statements prepared monthly, quarterly, or at other intervals less than a year in duration.

14.The process of recording an item in the financial statements as an asset, liability, revenue, expense, or the like.

15.An asset resulting from the payment of cash before the incurrence of expense.

16.The name given to revenue, expense, and dividend accounts because they are temporary and are closed at the end of the period.

17.A system of accounting in which revenues are recognized when cash is received and expenses when cash is paid.

18.A liability resulting from the recognition of an expense before the payment of cash.

19.An account with a balance that is opposite that of a related account.

20.The amount that is paid for an asset and that is used as a basis for recognizing it on the balance sheet and carrying it on later balance sheets.

21.Outflows or other using up of assets or incurrences of liabilities resulting from delivering goods, rendering services, or carrying out other activities.