Adjusting Entries That Are Made to Recognize Revenue That Has

question 53

Multiple Choice

Adjusting entries that are made to recognize revenue that has been received but not yet earned are classified as

• A)estimates.
• B)deferrals.
• C)accruals.
• D)revaluations.

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Definitions:

Capital Structure

The combination of a company's long-term debt, particular short-term debt, common equity, and preferred equity, taken into account for funding its total operations and expansion.

Equity Issue

An equity issue is the release of new shares by a company to the public or certain investors to raise capital.

Debt Outstanding

The total amount of debt that a company or government has yet to repay.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of wealth maximization.