Which of the Following Statements Best Describes the Balance in a Revenue

question 14

Multiple Choice

Which of the following statements best describes the balance in a revenue account at the beginning of an accounting period?

• A)Zero
• B)Last period's ending balance
• C)Higher than the previous period's beginning balance
• D)Equal to the amount of retained earnings for the previous period

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Definitions:

Illegal

Activities or actions that are prohibited by law and subject to criminal penalties or civil remedies.

Disputed Debt

A debt that is not agreed upon by the debtor and creditor, often leading to legal action or negotiation for resolution.

Illusory Promise

An agreement that appears to be a contract but lacks the necessary elements to bind the parties, often due to vague or unenforceable terms.

Statute of Limitations

Laws prescribing the time limits within which legal proceedings may be initiated.