LO $3-1$ E$3-2$ Matching Definitions with Terms

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

provided.

Term

Definition

Accrual basis accounting

Expense recognition principle

Revenue recognition principle

Cash basis accounting

A$.$ Record expenses when incurred in earning

revenue.

B$.$ Record revenues when or as work is done, not

necessarily when cash is received.

C$.$ Record revenues when received and expenses

when paid.

D$.$ Record revenues when or as work is done, and

expenses when incurred.