Which of the Following Statements About the Balance in a Revenue

question 138

Multiple Choice

Which of the following statements about the balance in a revenue account at the beginning of an accounting period is true?

• A) The beginning balance of a revenue account will always be zero.
• B) The beginning balance of a revenue account equals last period's ending balance.
• C) The beginning balance of a revenue account will always be higher than the previous periods ending balance.
• D) The beginning balance of a revenue account will equal to the amount of retained earnings for the previous period.

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Definitions:

Expected Value

The calculated average of all possible outcomes of a random variable, weighted by their probabilities.

Uncertain Income

Income that is not guaranteed and can fluctuate due to various factors such as business cycles, seasonal work, or freelancing.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1 where 1 indicates certainty.

Random Variable

A variable with an uncertain future value.