B215 Lesson 4 Preclass Microlearning

_______ accounting is an accounting method that records revenues and expenses that are earned or incurred, even if the money is not received or paid.

Identify the type of accounting principle:

Revenue must be recorded in the period when the product or service was delivered.

• Revenue Recognition Principle

  o

• Historical Cost Principle

• Matching Principle

• Full-disclosure Principle

Identify the type of accounting principle:

Expenses are recognized in the same period as the revenue they helped generate.

• Revenue Recognition Principle

  o

• Historical Cost Principle

• Matching Principle

• Full-disclosure Principle

Identify the type of accounting principle:

The value of an asset should be recorded based on its acquisition cost.

• Revenue Recognition Principle

  o

• Historical Cost Principle

• Matching Principle

• Full-disclosure Principle

Identify the accounting assumption:

Businesses must keep their transactions separate from the owners or other businesses.

• Economic Entity Assumption

• Periodicity Assumption

• Monetary Unit Assumption

• Going Concern Assumption

Identify the accounting assumption:

The business is assumed to be in operation for an indefinite period of time.

• Economic Entity Assumption

• Periodicity Assumption

• Monetary Unit Assumption

• Going Concern Assumption