Question # 2. Listed below are five terms followed by a list of phrases that des
ID: 3595208 • Letter: Q
Question
Question # 2. Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
TERM
PHRASE
Number for
term that
matches the
phrase.
1. Prepayments
Assets or liabilities created when recognition precedes cash flows.
____
2. Post-closing trial balance
Assets or liabilities created when cash flows precede recognition.
____
3. Accruals
A list of accounts and balances containing the source data for preparation of financial statements.
____
4. Unadjusted trial balance
A list of accounts and their balances prepared before the effects of internal transactions are recorded.
____
5. Adjusted trial balance
A list of only permanent accounts and their balances prepared to show that the accounting equation is in balance.
____
TERM
PHRASE
Number for
term that
matches the
phrase.
1. Prepayments
Assets or liabilities created when recognition precedes cash flows.
____
2. Post-closing trial balance
Assets or liabilities created when cash flows precede recognition.
____
3. Accruals
A list of accounts and balances containing the source data for preparation of financial statements.
____
4. Unadjusted trial balance
A list of accounts and their balances prepared before the effects of internal transactions are recorded.
____
5. Adjusted trial balance
A list of only permanent accounts and their balances prepared to show that the accounting equation is in balance.
____
Explanation / Answer
Assets or liabilities created when recognition precedes cash flows.
Ans: 3. Accruals
Assets or liabilities created when cash flows precede recognition.
Ans:1. Prepayments
A list of accounts and balances containing the source data for preparation of financial statements.
Ans: 5. Adjusted trial balance
A list of accounts and their balances prepared before the effects of internal transactions are recorded.
Ans:4. Unadjusted trial balance
Assets or liabilities created when cash flows precede recognition.
Ans: 2. Post-closing trial balance