2. Match the following terms the appropriate definition. A. Accrual basis accounting B. Cash basis accounting C. Prepaid expenses D. Depreciation expense E. Time period principle F. Matching principle G. Closing entries (1) Items paid for in advance of receiving their benefits. (2) A principle that assumes that an organization's activities can be divided into specific time periods such as months, quarters, or years. (3) The principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses. (4) The accounting system that recognizes revenues when earned and expenses when incurred. (5) The expense created by allocating the cost of plant and equipment to the periods in which they are used. (6) Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the permanent owner's capital account. (7) The accounting system where revenues are recognized when cash is received and expenses are recorded when cash is paid.