Fred, a Financial Accountant at a Multinational Company, Is Asked

question 145

Multiple Choice

Fred, a financial accountant at a multinational company, is asked by his supervisor to find out the exact income the company earns from the sale of its products over the next five weeks. To do this, for the next five weeks, Fred matches the revenue earned from the sale of the company's products and matches the expenses incurred by the company to the revenue they help produce. In this scenario, which of the following has Fred used to get the required information?

• A) Accrual-basis accounting
• B) Horizontal analysis
• C) Liquidity index
• D) Static analysis

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Definitions:

Private Method

A function or method in a class that cannot be accessed directly from outside the class but can be called by other methods within the same class.

Legal Statement

A syntactically correct statement according to the rules of the programming language being used.

Static Data Members

Variables within a class that are shared by all instances of the class, holding the same value for each instance.

Finalize Method

A method in Java used for cleanup just before an object is garbage collected, but its use is generally discouraged in favor of other cleanup mechanisms.