_____ Is the Difference Between Revenue Earned and Expenses Incurred

question 42

Multiple Choice

_____ is the difference between revenue earned and expenses incurred.

• A) Profit
• B) Liability
• C) Gap ratio
• D) Depreciation

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Definitions:

Acquisition Date

The specific date on which control of the assets of an acquired company is transferred to the buyer.

Deferred Tax Item

A financial item on the balance sheet that arises due to timing differences between the recognition of income and expenses for accounting and tax purposes.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its separate net assets.

Recognition

The process of capturing for inclusion in the statement of financial position or statement of profit or loss and other comprehensive income an item that meets the definition of one of the elements of financial statements—an asset, a liability, equity, income, or expenses.