Which One of the Following Statements Is Correct

question 47

Multiple Choice

Which one of the following statements is correct?

• A) Invoice price = Flat price - Accrued Interest
• B) Invoice price = Flat price + Accrued Interest
• C) Flat price = Invoice price + Accrued Interest
• D) Invoice price = Settlement price - Accrued Interest

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Definitions:

Unearned Rent

Unearned rent is money received by a landlord for rent that has not yet been earned because the rental period has not occurred. It is recorded as a liability until the period passes.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.

Depreciation Expense

A technique for spreading out the expense of a physical asset throughout its lifespan.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and equipment.