Match the following terms with the appropriate definition.
-The accounting system that uses the adjusting process to recognize revenues when earned and expenses when incurred.
A)Accrued revenues
B)Expense recognition (matching) principle
C)Cash basis accounting
D)Depreciation
E)Accrual basis accounting
F)Interim financial statements
G)Straight-line depreciation
H)Time period assumption
I)Fiscal year

Question

Quizplus · Accepted Answer

Accrual basis accounting is the system that recognizes revenues when they are earned and expenses when they are incurred, regardless of when cash is received or paid.

Match the Following Terms with the Appropriate Definition