Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

listed below are nine technical accounting terms used in this chapter: Unrecorded revenue Book value Unearned revenue Adjusting entries Matching principle Materiality Accrued expenses Accumulated

listed below are nine technical accounting terms used in this chapter:

Unrecorded revenue

Book value

Unearned revenue

Adjusting entries

Matching principle

Materiality

Accrued expenses

Accumulated depreciation

Prepaid expenses

Each of the following statements may ( or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer ''None'' if the statement does not correctly describe any of the terms.

a. The net amount at which an asset is carried in the accounting records as distinguished from its market value.

b. An accounting concept that may justify departure from other accounting principles for purposes of convenience and economy.

c. The offsetting of revenue with expenses incurred in generating that revenue.

d. Revenue earned during the current accointing period but not yet recorded or billed, which requires an adjusting entry at the end of the period.

e. Entries made at the end of the period to achieve the goals of accrual accounting by recording revenue when it is earned and by recording expenses when the related goods and services are used.

f. A type of account credited when customers pay in advance for services to be rendered in the future.

g. A balance sheet category used for reporting advance payments of such items as insurance,rent, and office supplies.

h. An expense representing the systematic allocation of an asset's cost over its useful life.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

6th edition

1259864235, 1259864230, 1260159547, 126015954X, 978-1259864230

More Books

Students also viewed these Accounting questions