Which One of the Following Terms Would Best Describe the Type

question 162

Multiple Choice

Which one of the following terms would best describe the type of compounding that occurs when interest is compounded continuously?

• A) Irregular.
• B) Daily.
• C) Minute by minute.
• D) Annually.
• E) Instantaneous.

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Definitions:

Revenue

The total amount of money received by a company for goods sold or services provided during a specific period.

Expense

An outflow of money to another person or entity to pay for an item or service or for a category of costs.

Owner's Capital Account

An equity account on a company's balance sheet representing the owner's invested funds plus the net income minus the withdrawals by the owner.

Closing Entries

A set of journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts.