Coordinated Universal Time (UTC) Is

question 122

Multiple Choice

Coordinated Universal Time (UTC) is

• A) the same as Greenwich Mean Time (GMT).
• B) established 24 standard meridians around the globe at equal intervals from the prime meridian.
• C) replaced Greenwich Mean Time (GMT) and became the legal reference for official time in all countries.
• D) two-hours ahead of Zulu time, indicating the single moment when all locations on the planet are on the same calendar day.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, represented as a charge against earnings in the income statement.

Interest Payable

The amount of interest that has been incurred on borrowed funds that a company must pay, typically represented as a current liability on the balance sheet.

Effective Interest Method

An accounting technique used to allocate the interest expense of a bond evenly over its life, based on the bond's carrying value.

Premium Bond

A bond sold for more than its face value, where the bond's coupon rate is higher than the prevailing market rate of interest.