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J 1. Accrual Basis
A system of accounting in which revenues are recognized when earned and expenses are
recognized when incurred.
H 2. Cost Principle
Assets are recorded at the cost to acquire them.
E 3. Credit
An entry on the right side of an account.
D 4. Debit
An entry on the left side of an account.
A 5. Generally Accepted Accounting Principles (GAAP)
The various methods, rules, practices, and other procedures that have evolved over time in
response to the need to regulate the preparation of financial statements.
C 6. General Ledger
A book, file, hard drive, or other devices containing all of a company’s accounts.
F 7. Journal
A chronological record of transactions, also known as the book of original entry.
I 8. Liquidity
The ability of a company to pay the debts as they come due.
G 9. Matching Principle
The association of revenue of a period with all of the costs necessary to generate that revenue.
B 10. Materiality
The magnitude of an omission or misstatement in accounting information that will affect the
judgment of someone relying on the information.
Solution
J 1. Accrual Basis
A system of accounting in which revenues are recognized when earned and expenses are
recognized when incurred.
H 2. Cost Principle
Assets are recorded at the cost to acquire them.
E 3. Credit
An entry on the right side of an account.
D 4. Debit
An entry on the left side of an account.
A 5. Generally Accepted Accounting Principles (GAAP)
The various methods, rules, practices, and other procedures that have evolved over time in
response to the need to regulate the preparation of financial statements.
C 6. General Ledger
A book, file, hard drive, or other devices containing all of a company’s accounts.
F 7. Journal
A chronological record of transactions, also known as the book of original entry.
I 8. Liquidity
The ability of a company to pay the debts as they come due.
G 9. Matching Principle
The association of revenue of a period with all of the costs necessary to generate that revenue.
B 10. Materiality
The magnitude of an omission or misstatement in accounting information that will affect the
judgment of someone relying on the information.

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J           1. Accrual BasisA system of accounting in which revenu.pdf

  • 1. J 1. Accrual Basis A system of accounting in which revenues are recognized when earned and expenses are recognized when incurred. H 2. Cost Principle Assets are recorded at the cost to acquire them. E 3. Credit An entry on the right side of an account. D 4. Debit An entry on the left side of an account. A 5. Generally Accepted Accounting Principles (GAAP) The various methods, rules, practices, and other procedures that have evolved over time in response to the need to regulate the preparation of financial statements. C 6. General Ledger A book, file, hard drive, or other devices containing all of a company’s accounts. F 7. Journal A chronological record of transactions, also known as the book of original entry. I 8. Liquidity The ability of a company to pay the debts as they come due. G 9. Matching Principle The association of revenue of a period with all of the costs necessary to generate that revenue. B 10. Materiality The magnitude of an omission or misstatement in accounting information that will affect the judgment of someone relying on the information. Solution J 1. Accrual Basis A system of accounting in which revenues are recognized when earned and expenses are recognized when incurred. H 2. Cost Principle Assets are recorded at the cost to acquire them. E 3. Credit An entry on the right side of an account. D 4. Debit An entry on the left side of an account.
  • 2. A 5. Generally Accepted Accounting Principles (GAAP) The various methods, rules, practices, and other procedures that have evolved over time in response to the need to regulate the preparation of financial statements. C 6. General Ledger A book, file, hard drive, or other devices containing all of a company’s accounts. F 7. Journal A chronological record of transactions, also known as the book of original entry. I 8. Liquidity The ability of a company to pay the debts as they come due. G 9. Matching Principle The association of revenue of a period with all of the costs necessary to generate that revenue. B 10. Materiality The magnitude of an omission or misstatement in accounting information that will affect the judgment of someone relying on the information.