Which of the Following Is an Example of a Commitment

question 126

Multiple Choice

Which of the following is an example of a commitment?

• A) Lease
• B) Note payable
• C) Revenue received in advance
• D) Dividend payable

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Definitions:

Gain

A financial increase or profit, particularly from the sale of investments or assets, not typically related to the entity’s primary operations.

Extraordinary Repair

A significant restoration or overhaul that extends an asset's useful life beyond its original forecast.

Gain

A gain refers to an increase in wealth or resources, typically measured in financial terms and often realized from the sale of an asset for more than its cost.

Accounting Rules

The formal guidelines and principles that govern financial accounting practices, ensuring accuracy and consistency in financial reporting.