Which of the Following Accounts Was Created as the Result

question 9

Multiple Choice

Which of the following accounts was created as the result of a deferral?

• A)Interest payable
• B)Interest revenue
• C)Supplies inventory
• D)Accounts receivable

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Definitions:

Duration

A financial metric that indicates the sensitivity of a bond's price to changes in interest rates, commonly measured in years.

Par-Value

Par-value is the legal capital per share, established for stocks and bonds, representing a minimal value below which shares cannot be issued.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often used to assess interest rate risk.