Launched in 2009, EDivvy Is an 11- Person Firm That

question 83

Multiple Choice

Launched in 2009, eDivvy is an 11- person firm that generated _________ in its first year.

• A) Over $50,000
• B) $500,000
• C) One million
• D) $3.5 million

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Definitions:

Period-End Adjusting Entry

Journal entries made at the end of an accounting period to update the balances of certain accounts and ensure compliance with the accrual basis of accounting.

Revenue Recognition Rules

Accounting principles that determine when and how revenue is recognized in the financial statements.

Gross Method

An accounting practice where purchase discounts are ignored unless they are actually taken by the purchaser.

Period-End Adjusting Entry

Journal entries made at the end of an accounting period to update accounts for accruals and deferrals that have not been recorded.