The Primary Difference Between Accrued Revenues and Unearned Revenues Is

question 201

Multiple Choice

The primary difference between accrued revenues and unearned revenues is that accrued revenues have:

• A)not been recognized as revenue and unearned revenues have been.
• B)been received in cash and unearned revenues have not.
• C)been recorded as a liability and unearned revenues have not.
• D)not been recorded and unearned revenues have.

Define Original Issue Discount (OID) and explain its creation.

Describe the methodology for computing the initial amount of an Original Issue Discount (OID).

Explain the process of reporting interest income from an OID instrument.

Understand the concept of authentic leadership and its significant components.

---

Definitions:

Interest Rate Risk

The risk that changes in interest rates will negatively affect the value of an investment, especially those with fixed interest rates.

Coupon

The interest rate stated on a bond when it's issued, which represents the annual interest payment made to bondholders.

Payable Semiannually

This term indicates that a payment, often in the context of bond interest or dividends, is made twice a year.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, including both interest payments and capital gains.