21) Match the following terms with the appropriate definitions. Definitions have not been provided for all of these terms.
a.Accrual
b.Deferral
c.Net income
d.The matching principle
e.The revenue recognition principle
f.The cost principle
g.The valuation principle
h.Adjustments
_____ 1. Updates made to account balances at the end of each accounting period
_____ 2. The rule that requires that revenues be recognized in the period when earned
_____ 3. A transaction in which the exchange of dollars comes before the action
_____ 4. The rule that requires that both earnings and the costs of earnings be reported on the same statement each accounting period
_____ 5. A transaction in which the action comes before the exchange of cash
22) Match the following terms with the appropriate definitions below. Some terms are used more than once.
a.Accrued revenue
b.Accrued expense
c.Deferred revenue
d.Deferred expense
_____ 1. An end of period adjustment to recognize office supplies used during a period
_____ 2. An end of period adjustment to recognize employee salaries earned but unpaid
_____ 3. An end of period adjustment to recognize depreciation on certain long-term assets
_____ 4. An end of period adjustment to recognize prepaid insurance used up during a period
_____ 5. An end of period adjustment to recognize prepaid rent used up during a period
_____ 6. An end of period adjustment to recognize interest costs incurred but unpaid
_____ 7. An end of period adjustment to recognize earnings related to work done but not yet billed
_____ 8. An end of period adjustment to recognize the amount of unearned revenue earned as of the end of the period