Use the list of concepts given to match the description of the concept to the concept. Accountants divide the economic life of a business into artificial time periodsAn accounting time period that is one year in length/ Companies record transactions in the period in which the events occurRecognize revenue in the accounting period in which a performance obligation is satisfiedEfforts (expenses) should be recognized in the period in which a company uses assets or incurs liabilities to generate accomplishments (revenues).An accounting time period that starts on January 1 and ends on December 31Companies record revenues when they receive cash and record expenses when they pay out cashMonthly and quarterly time periods ConceptDescriptionCash-basis accounting.dy.2. Fiscal year.3. Revenue recognition principle.Recognize revenue in the accounting period in which a performance obligation is satisfied4. Expense recognition principle.

A fiscal year need not be necessarily starting from January 1 and end on December 31.

Concept Description 1. Cash-basis accounting. 2. Fiscal year. 3. Revenue recognition principle. Recognize revenue in the accounting period in which a performance obligation is satisfied 4. Expense recognition principle.

Concept Description 1. Cash-basis accounting. 2. Fiscal year. 3. Revenue recognition principle. Recognize revenue in the accounting period in which a performance obligation is satisfied 4. Expense recognition principle.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 53P

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