Completely and Precisely Define the Following Terms
The accrual basis of accounting:
The Matching principle:
Name and define one type of adjusting entry where cash is paid(or received) BEFORE Expenses or Revenues are Recognized:
Name and Define one type of adjusting entry where cash is paid(or received) AFTER Expenses or Revenue are Recognized:
Adjusted Trial balance:
Completely and Precisely Define the Following Terms
The accrual basis of accounting:
The Matching principle:
Name and define one type of adjusting entry where cash is paid(or received) BEFORE Expenses or Revenues are Recognized:
Name and Define one type of adjusting entry where cash is paid(or received) AFTER Expenses or Revenue are Recognized:
Adjusted Trial balance:
Related questions
Under accrual-basis accounting
| A. | events that change a company's financial statements arerecognized in the period they occur rather than in the period inwhich cash is paid or received. | |
| B. | net income is calculated by matching cash outflows against cashinflows. | |
| C. | the ledger accounts must be adjusted to reflect a cash basis ofaccounting before financial statements are prepared under generallyaccepted accounting principles. | |
| D. | cash must be received before revenue is recognized. |
