A Graph Measures Y on the Vertical Axis and X

question 160

Multiple Choice

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that

• A) the value of x never changes.
• B) the ratio of x to y is constant.
• C) the slope of the line is not defined because y never changes.
• D) the value of y does not depend on the value of x.

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Definitions:

Deferral Adjusting Entry

An accounting entry made to defer the recognition of revenue or expenses to a future period.

Unearned Revenue

Money received by an entity for a service or product that has yet to be delivered or completed.

Interest Revenue

Income earned from lending money or from investments in interest-bearing accounts or securities.

Matching Revenue

The accounting principle of recognizing revenue and the related expenses in the same accounting period to accurately report profit.