Under the Deferral Method of Accounting for Advance Receipt of Revenues

question 77

Multiple Choice

Under the deferral method of accounting for advance receipt of revenues, which of the following statements is/are correct?
I.Receipts of service revenue colleted in advance are included in gross income in the current year to the extent they included in revenue for financial accounting purposes.
II.Receipts of rents and interest collected in advance are included in gross income in the current year to the extent they are included in revenue for financial accounting purposes.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Style And Tone

The distinct manner of expression and the attitude or mood conveyed through writing or speech.

You-Attitude

A communication approach focusing on the needs, interests, and concerns of the audience rather than the speaker's own perspective.

Positive Emphasis

The practice of focusing on positive aspects within communication to enhance message effectiveness.

Readability Formulas

Mathematical approaches used to assess the reading difficulty level of written text, often by evaluating sentence length and word complexity.