Q1.2: Choose one of the following definitions from the table, and put it in front of the

statement that shows this definition (10 marks)

Ratio analysis	Accounts receivable	Accumulated depreciation	Historical cost	Faithful representation
Quality of Earnings	Net income	Earnings Management	Bookkeeping	Corporation
Unearned revenues	Liabilities	Inventory	Prepaid expenses	ratio

#	STATEMENT	DEFINITIONS
1	The planned timing of revenues, expenses, gains, and losses to smooth out bumps in net income
2	The desire to minimize errors and bias in financial statements.
3	Company provides full and transparent information.
4	Expenses paid in cash and recorded as assets before they are used or consumed.
5	Right to receive money from a customer as the result of a sale.
6	Belief that items should be reported on the balance sheet at the price that was paid to acquire the item.
7	Organized as a separate legal entity under Company Law and having ownership divided into transferable shares of stock.
8	Cash received before service are performed.
9	Total amount of depreciation expensed thus far in the assets life.
10	Arising from expenses include accounts payable