Numerous timing concepts are discussed on pages 98 and 99.A list of concepts is provided on the next page, 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.
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1. ____ Accrual basis accounting. |
(a) Monthly and quarterly time periods. |
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2. ____ Calendar year. |
(b) Efforts (expenses) should be matched with accomplishments (revenues). |
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3. ____ Time period assumption. |
(c) Accountants divide the economic life of a business into artificial time periods. |
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4. ____ Expense recognition |
(d) Companies record revenues when they receive cash and record expenses when they pay out cash. |
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(e) An accounting time period that is one year in length. |
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(f) An accounting time period that starts on January 1 and ends on December 31. |
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(g) Companies record transactions in the period in which the events occur. |