Everett, Inc

question 35

Multiple Choice

Everett, Inc.'s reporting period ends on June 30th every year. This is an example of:

• A)matching.
• B)fiscal period.
• C)materiality.
• D)relevance.

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Definitions:

Unamortized Premium

The portion of a bond's premium that has not yet been amortized or reduced over time through periodic charges to income.

Straight-Line Method

A method of calculating depreciation that allocates an equal amount of an asset's cost to each year of its useful life.

Maturity

The date on which a financial obligation or investment becomes due for payment.

Face Value

The nominal value stated on financial instruments, such as bonds or stock certificates, representing the amount to be repaid at maturity.