Examlex

Solved

The Accountant of Ovenly Inc

question 83

Multiple Choice

The accountant of Ovenly Inc. failed to make an adjusting entry to record $6,000 of unearned service revenue that has now been earned. Assume the unearned revenue was initially recorded as a liability. Which of the following statements is true?


Definitions:

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock.

Amortization

The gradual reduction of a debt over a period of time through regular payments that cover parts of both principal and interest.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge against earnings.

Installment Payments

Periodic payments made over a set period of time to pay off a loan or purchase.

Related Questions