Listed below are nine technical accounting terms. Unrecorded revenue Adjusting entries Accrued expensesBook value Matching principle Accumulated depreciationUnearned revenue Materiality Prepaid expensesRequired:Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not correctly describe any of the terms.The net amount at which an asset is carried in the accounting records as distinguished from its market value.An accounting concept that may justify departure from other accounting principles for purposes of convenience and economy.The offsetting of revenue with expenses incurred in generating that revenue.Revenue earned during the current accounting period but not yet recorded or billed, which requires an adjusting entry at the end of the period.Entries made at the end of the period to achieve the goals of accrual accounting by recording revenue when it is earned and by recording expenses when the related goods and services are used.A type of account credited when customers pay in advance for services to be rendered in the future.A balance sheet category used for reporting advance payments of such items as insurance, rent, and office supplies.An expense representing the systematic allocation of an asset’s cost over its useful life.

Match the terms with the given Statements. Required Each of the following statements may (or may…

Answered: Prepaid expenses Required: Each of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 1PA: Identify whether each of the following accounts would be considered a permanent account (yes/no) and...

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Listed below are nine technical accounting terms.

Unrecorded revenue Adjusting entries Accrued expenses

Book value Matching principle Accumulated depreciation

Unearned revenue Materiality Prepaid expenses

Required:

Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not correctly describe any of the terms.

The net amount at which an asset is carried in the accounting records as distinguished from its market value.
An accounting concept that may justify departure from other accounting principles for purposes of convenience and economy.
The offsetting of revenue with expenses incurred in generating that revenue.
Revenue earned during the current accounting period but not yet recorded or billed, which requires an adjusting entry at the end of the period.
Entries made at the end of the period to achieve the goals of accrual accounting by recording revenue when it is earned and by recording expenses when the related goods and services are used.
A type of account credited when customers pay in advance for services to be rendered in the future.
A balance sheet category used for reporting advance payments of such items as insurance, rent, and office supplies.
An expense representing the systematic allocation of an asset’s cost over its useful life.

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