1. Match each term associated with accrual-basis and cash-basis accounting with its most appropriate description. Accru...
1. Match each term associated with accrual-basis and cash-basis accounting with its most appropriate description.
- Accrual-basis expense
- Accrual-basis revenue
- Revenue recognition principle
- Cause-and-effect
- Cash basis revenue
- Cash-basis expense
Match each of the options above to the items below.
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A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in May.
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A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in June
-
A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in June.
-
Informal concept in accounting which states that expenses are recorded in the same period as the revenues they help to generate.
-
A company receives cash from customers in May and performs services in June. The revenue is recorded in June.
-
Formal concept which states that sales of products or services are recorded in the period they are provided to customers.
- A company receives cash from customers in May and performs services in June. The revenue is recorded in May.
Homework Answers
| Accrual-basis expense | A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in June. |
| Accrual-basis revenue | A company receives cash from customers in May and performs services in June. The revenue is recorded in June. |
| Revenue recognition principle | Formal concept which states that sales of products or services are recorded in the period they are provided to customers. |
| Cause-and-effect | Informal concept in accounting which states that expenses are recorded in the same period as the revenues they help to generate. |
| Cash basis revenue | A company receives cash from customers in May and performs services in June. The revenue is recorded in May. |
| Cash-basis expense | A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in May. |
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solve all these problem please
thank you
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