Problem 6: Matching (2 points each, 12 points total Match the term associated with the accrual-basis and cash-basis accounting with its most appropriate description. Place the letter of the term in the answer section by the description. Terms: A. Accrual-basis expense B. Cash-basis expense C. Cash Basis Revenue D. Revenue Recognition Principle E. Accrual-basis revenue E. Matching Principle Answer 1. 3. Description A company receives cash from customers in May and performs services in June. The revenue is recorded in June. Formal concept which states that sales of products or services are recorded in the period they are provided to customers. A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in May. Informal concept in accounting which states that expenses are recorded in the same period as the revenues they help to generate. A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in June. A company receives cash from customers in May and performs services in June. The revenue is recorded in May. 5. 6