Match the following terms with the appropriate definition

1. Items paid for in advance of receiving their benefits.  

2. Allocates equal amounts of an asset's cost (less any salvage value) to depreciation expense during its useful life. 

3. A principle that assumes that an organization's activities can be divided into specific time periods such as months, quarters, or years. 

4. The principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses. 

5. The accounting system that recognizes revenues when earned and expenses when incurred. 

6. The expense is created by allocating the cost of plant and equipment to the periods in which they are used. 

7. Revenues earned in a period that is both unrecorded and not yet received in cash or other assets.

8. The accounting system where revenues are recognized when cash isreceived and expenses are recorded when cash is paid.

9. Net income divided by net sales

Answer rating: 100% (QA)

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