Match each definition with its related term by entering the appropriate letter in the space provided. There should be only one definition per term (that is, there are more definitions than terms).
Term
(1) Losses
(2) Expense recognition principle
(3) Revenues
(4) Time period assumption
(5) Operating cycle
Definition
A. Record revenues when earned and measurable (when the company transfers promised goods or services to customers, it should record the amount it expects to receive).
B. The time it takes to purchase goods or services from suppliers, sell goods or services to customers, and collect cash from customers.
C. Record expenses when incurred in earning revenue.
D. Decreases in assets or increases in liabilities from central ongoing operations.
E. Report the long life of a company in shorter time periods.
F. Increases in assets or decreases in liabilities from central ongoing operations.
G. Decreases in assets or increases in liabilities from peripheral transactions.