Match each of the following terms with the appropriate ...

[RYAN BANYAN]

Match each of the following terms with the appropriate definition. Use each term only once.
 
  a. monetary-unit assumption
  b. historical-cost principle
  c. going-concern assumption
  d revenue-recognition principle
  e. matching principle
  f. accrual accounting
  g. accruals
  h. deferrals
  i. cash-basis accounting
  j. detective controls
  k. corrective controls
  l. preventive controls
 
  _____ 1. Procedures to find errors
  _____ 2. Transactions in which the revenue is earned or the expense is incurred before the exchange of cash
  _____ 3. An accounting principle which requires that revenue should be recognized when it is earned
  _____ 4. An accounting assumption which requires that financial statement items be measured in monetary units
  _____ 5. An accounting method in which revenues are recognized when earned and expenses recognized when incurred
  _____ 6. Transactions in which the exchange of cash takes place before the revenue is earned or the expense incurred.
  _____ 7. An accounting principle which requires that financial statement items should be reported at their costs at the time of the transaction
  _____ 8. An accounting method in which revenues are recognized when cash is collected and expenses are recognized when cash is disbursed
  _____ 9. An accounting principle which requires that expenses should be recognized in the same period as the revenue they helped generate
  _____ 10. An accounting assumption which assumes that a company will continue to be in business in the future
  _____ 11. Controls designed to fix errors
  _____ 12. Controls designed to prevent an error or irregularity

Question 2

The Social Security, Medicare, FUTA, and SUTA tax accounts normally have credit balances.
 a. True
   b. False
   Indicate whether the statement is true or false

[ebe]

Answer to Question 1

j, g, d, a, f, h, b, i, e, c, k, l

Answer to Question 2

True

[RYAN BANYAN]

TYSM

[parshano]

Excellent