Which of the Following Is an Example of Revenue or Expense

question 94

Multiple Choice

Which of the following is an example of revenue or expense to be recognized in the current period's income statement?

• A)Cash received from a client before the service is provided.
• B)Inventory purchased for sale to customers.
• C)Wages owed to employees who worked during the period.
• D)Cash collected from an account receivable.

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Definitions:

Financing Activities

Transactions between a company and its financiers, including equity, debt, and dividend payments, affecting the cash flow statement.

Net Cash Flows

The difference between cash inflows and cash outflows in a given period, reflecting the company's liquidity position.

Statement of Cash Flows

The statement of cash flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Net Increase

The difference between the current figure and the previous figure when the current figure is larger.