Test #3

Question 1

Time period principal

Answer 1

A business should report their financial statements appropriate to a specific time period

Question 2

Matching principal

Answer 2

expenses should be recognized and recorded in the same period as the revenues they helped generate

Question 3

Accrual basis of accounting

Answer 3

The accrual basis of accounting records revenues and expenses when they are earned or incurred, regardless of when cash is received or paid

Question 4

Cash basis of accounting

Answer 4

Only count the revenue and expenses when they give or get money