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:

Pro Forma Earnings

Financial results excluding one-time events to give investors an idea of a company's normal earnings potential.

Basic EPS

Basic Earnings Per Share, a calculation that shows how much earnings are available to common stockholders, on a per-share basis.

Sustainable Earnings

Earnings resulting from the core operations of a company, expected to continue into the future without significant variation.

Equity Change

Refers to the movement in a company’s equity value over a period of time due to factors like earnings, share buybacks, and dividends.