Chapter 4 Flashcards
1
Q
revenue recognition principle
A
revenues are recorded when earned
2
Q
expense recognition principle
A
expenses are recorded when they are incurred to generate revenue
3
Q
deferred revenues
A
previously recorded liabilities that were created when cash was received in advance
4
Q
accrued revenues
A
revenues that have been earned but not yet recorded because cash will be received after the services are performed or goods are delivered
5
Q
deferred expenses
A
previously recorded assets that were created when cash was paid in advance
6
Q
accrued expenses
A
expenses that have been incurred but not yet recorded because cash will be paid after G&S are used
7
Q
earnings per share
A
net income/number of common stock shares
