Which of the Following Items Is Not a Specific Account

question 189

Multiple Choice

Which of the following items is not a specific account in a company's chart of accounts?

• A)Income Tax Expense
• B)Sales Revenue
• C)Deferred Revenue
• D)Net Income

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Definitions:

Operating Lease

A lease agreement allowing a company to use an asset without owning it, typically with shorter terms than a finance lease.

Financial Lease

A type of lease in which the lessee has use of the asset for a significant portion of its useful life, and the lease payments are designed to cover the lessor's initial costs.

Debt-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Relevant Discount Rate

The interest rate used to discount future cash flows to their present value to account for the risk and time value of money in decision making.