ACCOUNTING CONCEPTS. A list of accounting concepts is presented below.

Match each of the concepts with the corresponding definition or example by pairing each of the numbers from 1 through 7 with the appropriate letter.

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CONCEPT 1. Revenue 2. Expense 3. Accounting entity 4. Equity 5. Asset 6. Net income 7. Liability DEFINITION OR EXAMPLE a) An organization with an identity separate from its owners and managers and for which accounting records are kept and accounting reports are issued b) Capital stock and retained earnings e) Revenue minus expense d) Inflow to an entity from the sale of goods e) Probable future economic benefit (economic resources) obtained or controlled by an entity f) Outflow from an entity in order to sell goods g) Probable future economic sacrifices represented by creditors' claims against an entity's assets