Which of the Following Terms Refers to the Formal Recording

question 7

Multiple Choice

Which of the following terms refers to the formal recording and reporting of revenues in financial statements?

• A) full disclosure
• B) revenue recognition
• C) compliance
• D) ethical practice
• E) materiality

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Definitions:

Equal Installments

Periodic payments of the same amount over the term of a loan or investment.

Borrowed

Borrowed refers to funds that have been taken on loan from external sources, which are expected to be paid back with interest over time.

Daily Compounding

The process where the interest on an investment is calculated daily and added to the principal, so that each subsequent calculation of interest includes interest previously earned.

Bank Account

A financial account maintained by a banking institution in which the financial transactions between a customer and the bank are recorded.