Several timing concepts are discussed on pages 96-98. A list of concepts is provided below, on the left, with a description of the concept on the right. There are more descriptions provided than concepts. Match the description of the concept to the concept.
1. ______ Cash-basis accounting.
2. ______ Fiscal year.
3. ______ Revenue recognition principle.
4. ______ Expense recognition principle.
(a) Monthly and quarterly time periods.
(b) Accountants divide the economic life of a business into artificial time periods.
(c) Expenses result when assets are used up or liabilities are incurred to generate revenue.
(d) Companies record revenues when they receive cash and record expenses when they pay out cash.
(e) An accounting time period that is one year in length.
(f) An accounting time period that starts on January 1 and ends on December 31.
(g) Companies record transactions in the period in which the events occur.
(h) Recognize revenue when it is probable that future economic benefits will flow to the company and reliable measurement of the amount of revenue is possible.