The Adjusting Entry for Accrued Revenue Always Involves A

question 133

Multiple Choice

The adjusting entry for accrued revenue always involves a:

• A) debit to a revenue account and a credit to an asset account
• B) debit to a liability account and a credit to an asset account
• C) debit to an asset account and a credit to a liability account
• D) debit to an asset account and a credit to a revenue account

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Definitions:

Manage Exchange Rate

Strategies or practices employed by individuals, businesses, or countries to mitigate or take advantage of fluctuations in exchange rates.

London Interbank Offer Rate (LIBOR)

The rate most international banks charge one another for overnight Eurodollar loans.

Note Issuance Facility (NIF)

Large borrowers issue notes up to one year in maturity in the Euromarket. Banks underwrite or sell notes.

Forward Exchange Rate

An agreed-upon exchange rate for currencies to be exchanged on a predetermined future date, used to hedge against currency market fluctuations.