Which of the Following Best Describes Operating Revenues

question 103

Multiple Choice

Which of the following best describes operating revenues?

• A)They are increases in net assets as a result of peripheral transactions.
• B)They are decreases in net assets as a result of ongoing operations.
• C)They are increases in net assets as a result of ongoing operations.
• D)They are decreases in net assets as a result of peripheral transactions.

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Definitions:

Accrued Taxes Payable

Taxes that have been incurred but not yet paid, recorded as a liability on the company's balance sheet.

Current Liability

A financial obligation or debt that is due within one year or within the normal operating cycle of a business.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the company’s financial condition.

Current Assets

Current assets are resources that a company expects to convert into cash or use up within one year, including cash, inventory, and receivables.