Match Each Transaction with the Type of Entry That Will

question 64

Multiple Choice

Match each transaction with the type of entry that will be required at April 30,the company's year-end.
-The company owes interest on loans for the month of April and will not pay this interest until May.

• A)Closing entry
• B)Deferral adjusting entry
• C)Accrual adjusting entry

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Definitions:

Equity Method

An accounting technique used by companies to assess the profits earned through their investments in other companies, reflecting these profits as income.

Dividends

Payments made by a corporation to its shareholders from its profits or reserves, usually in the form of cash or additional shares.

Recognized Gain

An increase in the value of an asset that has been sold or deemed to have increased in value officially on financial statements.

Selling Price

The amount for which a product or service is sold, not necessarily equal to the cost or intrinsic value of the item.