{"id":187440,"date":"2025-02-04T18:58:37","date_gmt":"2025-02-04T18:58:37","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=187440"},"modified":"2025-02-04T18:58:39","modified_gmt":"2025-02-04T18:58:39","slug":"match-the-accounting-terms-on-the-left-with-the-corresponding-definitions-on-the-right-this-exercise-links-back-to-chapters-2-3","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/02\/04\/match-the-accounting-terms-on-the-left-with-the-corresponding-definitions-on-the-right-this-exercise-links-back-to-chapters-2-3\/","title":{"rendered":"Match the accounting terms on the left with the corresponding definitions on the right (This exercise links back to Chapters 2 &amp; 3)"},"content":{"rendered":"\n<p>Match the accounting terms on the left with the corresponding definitions on the right (This exercise links back to Chapters 2 &amp; 3).<br>Answer &#8211; a. b. c. d. e. f. g. Accounts receivable<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a. b. c. d. e. f. g. Prepaid Expenses<\/li>\n\n\n\n<li>a. b. c. d. e. f. g. Accumulated depreciation<\/li>\n\n\n\n<li>a. b. c. d. e. f. g. Accounts payable<\/li>\n\n\n\n<li>a. b. c. d. e. f. g. Unearned service revenue<\/li>\n\n\n\n<li>a. b. c. d. e. f. g. Accrued liabilities<\/li>\n\n\n\n<li>a. b. c. d. e. f. g. Depreciation<br>Answer a. A liability for which the business knows the amount owed, but has not paid the bill<br>b. An asset for which the advance payment provides a future benefit<br>c. A contra asset that holds the sum of all the depreciation recorded for an asset<br>d. The allocation of a plant&#8217;s cost to expense<br>e. The promise to pay a debt arising from a credit purchase<br>f. A promise of future cash receipts<br>g. Receipt of cash before earning it<\/li>\n<\/ul>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\"><strong>The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Correct Answers:<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Accounts receivable<\/strong> \u2013 <strong>(f) A promise of future cash receipts<\/strong><\/li>\n\n\n\n<li><strong>Prepaid Expenses<\/strong> \u2013 <strong>(b) An asset for which the advance payment provides a future benefit<\/strong><\/li>\n\n\n\n<li><strong>Accumulated Depreciation<\/strong> \u2013 <strong>(c) A contra asset that holds the sum of all the depreciation recorded for an asset<\/strong><\/li>\n\n\n\n<li><strong>Accounts payable<\/strong> \u2013 <strong>(e) The promise to pay a debt arising from a credit purchase<\/strong><\/li>\n\n\n\n<li><strong>Unearned service revenue<\/strong> \u2013 <strong>(g) Receipt of cash before earning it<\/strong><\/li>\n\n\n\n<li><strong>Accrued liabilities<\/strong> \u2013 <strong>(a) A liability for which the business knows the amount owed, but has not paid the bill<\/strong><\/li>\n\n\n\n<li><strong>Depreciation<\/strong> \u2013 <strong>(d) The allocation of a plant\u2019s cost to expense<\/strong><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Explanation:<\/h3>\n\n\n\n<p>Each of these accounting terms relates to specific financial transactions in a business.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Accounts receivable<\/strong> represents money that customers owe a company for goods or services provided on credit. It is an asset because it represents future cash inflows.<\/li>\n\n\n\n<li><strong>Prepaid expenses<\/strong> occur when a business pays in advance for a service or product, such as rent or insurance. This is considered an asset because it provides future benefits.<\/li>\n\n\n\n<li><strong>Accumulated depreciation<\/strong> is a contra asset account that records the total depreciation of an asset over time. It reduces the book value of the asset on the balance sheet.<\/li>\n\n\n\n<li><strong>Accounts payable<\/strong> represents a business&#8217;s obligation to pay off short-term debts to suppliers. This arises when a company purchases goods or services on credit.<\/li>\n\n\n\n<li><strong>Unearned service revenue<\/strong> is recorded when a company receives payment for services it has yet to perform. It is initially recorded as a liability because the company has an obligation to fulfill the service.<\/li>\n\n\n\n<li><strong>Accrued liabilities<\/strong> are expenses that a business recognizes but has yet to pay, such as wages or utilities. The amount is known, but the payment is deferred.<\/li>\n\n\n\n<li><strong>Depreciation<\/strong> spreads out the cost of a tangible asset (like equipment) over its useful life. This ensures that the asset\u2019s cost is matched with the revenue it helps generate.<\/li>\n<\/ul>\n\n\n\n<p>Understanding these terms helps businesses track financial transactions accurately and ensure proper financial reporting.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Match the accounting terms on the left with the corresponding definitions on the right (This exercise links back to Chapters 2 &amp; 3).Answer &#8211; a. b. c. d. e. f. g. Accounts receivable The Correct Answer and Explanation is : Correct Answers: Explanation: Each of these accounting terms relates to specific financial transactions in a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-187440","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/187440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=187440"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/187440\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=187440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=187440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=187440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}