197. Match the following definitions with the terms 1 through 9. Place the letter that identifies the best definition in the blank space next to the term. 1. Liabilities The principle that...

1. Liabilities

The principle that assumes transactions and events can be expressed in money units

2. Business entity principle

The cost of assets or services used to earn revenue

3. Expenses

A financial statement that reports the changes in retained earnings over the reporting period; adjusted for increases from net income and for decreases such as dividends or net loss

4. Business transaction

The principle that requires a business to be accounted for separately from its owners

5. Statement of cash flows

A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing and financing activities

6. Statement of retained earnings

Creditor's claims on assets

7. Revenue recognition principle

The principle that revenue is recognized when earned

8. Monetary unit principle

An exchange of value between two parties

9. Accounting equation

The relation between a company's assets, liabilities and equity