Revenue Results When There Is an Increase in a Liability

question 93

True/False

Revenue results when there is an increase in a liability or a decrease in an asset.

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Definitions:

Anticipated Amount

The anticipated amount is an estimate of funds expected to be received or paid in the future.

External Financing

Funds raised from sources outside the company, including banks, investors, or public markets.

Operating Capacity

The maximum output or the level of service that a company can achieve with its current resources under normal conditions.

Dividend Payout Ratio

A financial metric that shows what percentage of a company's earnings are distributed to shareholders as dividends.