Question

Identify each term definition below:

a. Obligations that the company expects to pay after one year. b. Principle that requires that companies include in the accounting records only transaction data that can be expressed in terms of money. "c. Cost of assets consumed or services used in the process of earning revenue. " d. The entire group of accounts maintained by a company. e. List the four financial statements

Answer 1

Answer: Please refer to Explanation

Step-by-step explanation:

a. Obligations that the company expects to pay after one year.

- These are Long Term Liabilities as they are expected to be paid AFTER a year.

b. Principle that requires that companies include in the accounting records only transaction data that can be expressed in terms of money.

MONETARY UNIT ASSUMPTION states that only those Transactions that can be recorded in monetary terms be recorded.

"c. Cost of assets consumed or services used in the process of earning revenue. "

EXPENSES

d. The entire group of accounts maintained by a company.

The LEDGER is the entire group of accounts maintained by a company.

e. List the four financial statements.

- STATEMENT OF CHANGES IN EQUITY

- BALANCE SHEET

- INCOME STATEMENT

- CASH FLOW STATEMENT