Accounting Income Consists of All the Following Components Except

question 27

Multiple Choice

Accounting income consists of all the following components except:

• A) permanent component.
• B) transitory component.
• C) value irrelevant component.
• D) temporary component.

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Definitions:

Held-to-Maturity Bonds

Bonds that an issuer has the intent and ability to hold until a defined maturity date.

Accrued Interest

Interest that has been earned but not yet received in cash or recorded by the payee.

Interest Revenue

The income a company receives from its investments in interest-bearing accounts or other instruments.