Questions: Test: Test 2 - Chs 3 and 4 - Fall 2024 Question 17 of 37 This test: 94 point(s) possible This question: 3 point(s) possible Submit test Question list Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Match the accounting terminology to the definitions. Definition Term Requires companies to record revenue when it satisfies each performance obligation. Assumes that a business's activities can be sliced into small time segments and that financial statements can be prepared for specific periods. Guides accounting for expenses, ensures that all expenses are recorded when. they are incurred during the period, and matches those expenses against the revenues of the period. Matching principle Revenue recognition principle Time period concept

Test: Test 2 - Chs 3 and 4 - Fall 2024 Question 17 of 37 This test: 94 point(s) possible This question: 3 point(s) possible Submit test Question list Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Match the accounting terminology to the definitions. Definition Term Requires companies to record revenue when it satisfies each performance obligation. Assumes that a business's activities can be sliced into small time segments and that financial statements can be prepared for specific periods. Guides accounting for expenses, ensures that all expenses are recorded when. they are incurred during the period, and matches those expenses against the revenues of the period. Matching principle Revenue recognition principle Time period concept
Transcript text: Test: Test 2 - Chs 3 and 4 - Fall 2024 Question 17 of 37 This test: 94 point(s) possible This question: 3 point(s) possible Submit test Question list Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Match the accounting terminology to the definitions. Definition Term Requires companies to record revenue when it satisfies each performance obligation. Assumes that a business's activities can be sliced into small time segments and that financial statements can be prepared for specific periods. Guides accounting for expenses, ensures that all expenses are recorded when. they are incurred during the period, and matches those expenses against the revenues of the period. Matching principle Revenue recognition principle Time period concept
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Solution

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Solution Steps

Step 1: Analyze the first definition

The first definition states that companies should record revenue when each performance obligation is satisfied.

Step 2: Match the first definition with the appropriate term

This aligns with the revenue recognition principle.

Step 3: Analyze the second definition

The second definition assumes that business activities can be divided into small time segments, allowing financial statements to be prepared for specific periods.

Step 4: Match the second definition with the appropriate term

This matches the time period concept.

Step 5: Analyze the third definition

The third definition guides expense accounting, ensuring expenses are recorded when incurred and matched against revenues for the same period.

Step 6: Match the third definition with the appropriate term

This corresponds to the matching principle.

Final Answer:

  • Revenue recognition principle: Requires companies to record revenue when it satisfies each performance obligation.
  • Time period concept: Assumes that a business's activities can be sliced into small time segments and that financial statements can be prepared for specific periods.
  • Matching principle: Guides accounting for expenses, ensures that all expenses are recorded when they are incurred during the period, and matches those expenses against the revenues of the period.
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