Matching Quiz

Match the terms listed below, with the appropriate desciption from the list on the right.


1				Account form balance sheet


2				Accounting period


3				Accrual basis accounting


4				Accrued expenses


5				Accrued revenues


6				Adjusted trial balance


7				Adjusting entry


8				Amortization


9				Book value of an asset


10				Capital assets


11				Cash basis accounting


12				Contra account


13				Correcting entries


14				Depreciation


15				External transactions


16				Intangible assets


17				Interim financial reports


18				Internal transactions


19				Market value of an asset


20				Matching principle


21				Prepaid expenses


22				Property, plant and equipment


23				Report form balance sheet


24				Reporting period


25				Straight-line amortization method


26				Time period principle


27				Unadjusted trial balance


28				Unearned revenues

Answer choices for questions 1 through 28

A)	Financial reports covering less than one year; usually based on one-, three- or six-month periods.
B)	A journal entry at the end of an accounting period to bring an asset or liability account balance to its proper amount while also updating the related expense or revenue account.
C)	Exchanges within an organization that can also affect the accounting equation.
D)	Amount an asset can be sold for. Market value is not tied to the book value of an asset.
E)	The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
F)	Cash received in advance of providing products and services.
G)	An account linked with another account and having an opposite normal balance; reported as a subtraction from the other account's balance so that more complete information than simply the net amount is provided.
H)	Items that are paid for in advance of receiving their benefits. These are assets.
I)	A balance sheet that lists items vertically with assets above the liabilities and owner's equity.
J)	Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses involve increasing (debiting) expenses and increasing (crediting) liabilities.
K)	The cost of the asset less its accumulated amortization.
L)	A balance sheet that lists assets on the left and liabilities and owner's equity on the right side of the balance sheet.
M)	A listing of accounts and balances prepared after adjustments are recorded and posted to the ledger.
N)	The expense created by allocating the cost of plant and equipment to the periods in which they are used; represents the expense of using the assets.
O)	Revenues are recognized when cash is received, and expenses are recorded when cash is paid.
P)	Allocates equal amounts of an asset's cost to amortization expense during its useful life.
Q)	A broad principle that assumes that an organization's activities can be divided into specific time periods such as months, quarters, or years.
R)	Time frame covered by financial statements and other reports; also called reporting periods.
S)	A listing of accounts and balances prepared before adjustments are recorded and posted to the ledger.
T)	Exchanges between the entity and some other person or organization.
U)	See accounting period.
V)	Accounting entries made in order to correct errors.
W)	Long-lived (capital) assets that have no physical substance but convey a right to use a product or process.
X)	Revenues earned in a period that are both unrecorded and not yet received in cash (or other assets); adjusting entries for recording accrued revenues involve increasing (debiting) assets and increasing (crediting) revenues.
Y)	Include long-term tangible assets, such as plant and equipment, and intangible assets, such as patents. Capital assets are expected to provide benefits for more than one period.
Z)	See amortization.
AA)	The approach to preparing financial statements that uses the adjusting process to recognize revenues when earned and expenses when incurred, not when cash is paid or received; the basis for generally accepted accounting principles.
AB)	Tangible long-lived assets used to produce goods or services. See capital assets.

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