PART 1 REVIEW

Question 1

what is a cash-to-cash sequence of transactions that usually starts with cash on hand and ends when cash is collected from customers?

Answer 1

operating cycle

Question 2

what is the process of allocating the cost of a plant and equipment asset over the period of time it is expected to be used?

Answer 2

depreciation

Question 3

what is an estimate of what the plant and equipment asset will be sold for when it is no longer used by a business?

Answer 3

residual value

Question 4

what is an asset or liability account requiring adjustment at the end of an accounting period?

Answer 4

temporary account

Question 5

what states that expenses are to be reported in the same period as the revenues they helped generate?

Answer 5

matching principal