A(n)________ Invests in the Equity of Existing Privately Held Firms

question 12

Multiple Choice

A(n) ________ invests in the equity of existing privately held firms.

• A)venture capital firm
• B)private debt firm
• C)vulture fund
• D)private equity firm

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Definitions:

Accrual Basis

An accounting method where revenues are recorded when earned and expenses are recorded when incurred, regardless of when cash is exchanged.

Cash Received

Money that a business or individual has taken in, whether from transactions, investments, or other sources.

Matching Concept

A fundamental principle in accounting that ensures expenses are matched with the revenues they generate in the same period.

Deferral Adjusting Entry

An accounting entry made to defer the recognition of revenue or expenses to a future period.