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

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Definitions:

Genetic Differences

Variations in the genes among individuals or populations, which contribute to the biodiversity and heritable traits within species.

Migratory Orientation

The innate or learned ability of animals, particularly birds, to navigate and migrate over long distances across changing environments.

DNA Methylation

A biochemical process involving the addition of a methyl group to the DNA molecule, affecting gene expression without changing the DNA sequence.

Epigenetic Modification

Chemical changes to the DNA or histones that affect gene expression without altering the DNA sequence, influenced by environmental factors.