quiz 3

Question 1

matches revenue earned with expenses incurred to produce that revenue during the accounting period

Answer 1

accural basis of accounting

Question 2

recognizes revenue and expenses only when cash changes hands

Answer 2

cash basis

Question 3

requires the definition and use of the same period of time for each accounting period

Answer 3

time period

Question 4

Expenses should be recorded and matched with the revenue they help to generate during the same accounting period

Answer 4

matching principle