Which of the Following Is Correct

question 165

Multiple Choice

Which of the following is correct?

• A)Stocks, bonds, and deposits are all similar in that each provides a common medium of exchange.
• B)Most buyers of stocks and bonds prefer those issued by large and familiar companies.
• C)Banks charge borrowers a slightly lower interest rate than they pay to depositors.
• D)None of the above is correct.

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Definitions:

Revenue

Revenue is the total amount of money earned by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Revenue Recognition

The accounting principle that dictates the specific conditions under which income becomes recognized as revenue and is reported in the financial statements.

Accounting Records

Documentation and books that contain the financial transactions and financial status of a company.

Services Rendered

Work or duties performed for a client, often resulting in payment for the service provider.