Question

ment and balance sheet term to its role in their respective statements.

venue
penses
nts payable
ct receivable

revenue
expenses
accounts payable
account receivable

the amount of gross sales from goods and
services.
the costs a business has to maintain operations
and sell goods and services.
the amount of money a business owes to
vendors.
the amount of money customers owe to a
business for goods and services sold.

Explanation:

To solve this matching problem, we analyze each term and its description:

1. Revenue

• Description: "The amount of gross sales from goods and services."
• Reason: Revenue represents the income generated from a business’s primary activities (selling goods/services).

2. Expenses

• Description: "The costs a business has to maintain operations and sell goods and services."
• Reason: Expenses are the costs incurred to run the business and generate revenue (e.g., rent, salaries, utilities).

3. Accounts Payable

• Description: "The amount of money a business owes to vendors."
• Reason: Accounts Payable is a liability account that tracks money owed to suppliers/vendors for purchases on credit.

4. Accounts Receivable

• Description: "The amount of money customers owe to a business for goods and services sold."
• Reason: Accounts Receivable is an asset account that tracks money owed to the business by customers who purchased on credit.

Final Matches:

• Revenue → The amount of gross sales from goods and services.
• Expenses → The costs a business has to maintain operations and sell goods and services.
• Accounts Payable → The amount of money a business owes to vendors.
• Accounts Receivable → The amount of money customers owe to a business for goods and services sold.

Answer:

To solve this matching problem, we analyze each term and its description:

1. Revenue

• Description: "The amount of gross sales from goods and services."
• Reason: Revenue represents the income generated from a business’s primary activities (selling goods/services).

2. Expenses

• Description: "The costs a business has to maintain operations and sell goods and services."
• Reason: Expenses are the costs incurred to run the business and generate revenue (e.g., rent, salaries, utilities).

3. Accounts Payable

• Description: "The amount of money a business owes to vendors."
• Reason: Accounts Payable is a liability account that tracks money owed to suppliers/vendors for purchases on credit.

4. Accounts Receivable

• Description: "The amount of money customers owe to a business for goods and services sold."
• Reason: Accounts Receivable is an asset account that tracks money owed to the business by customers who purchased on credit.

Final Matches:

• Revenue → The amount of gross sales from goods and services.
• Expenses → The costs a business has to maintain operations and sell goods and services.
• Accounts Payable → The amount of money a business owes to vendors.
• Accounts Receivable → The amount of money customers owe to a business for goods and services sold.