If Revenue and Expenses Were Equal for an Accounting Period

question 49

True/False

If revenue and expenses were equal for an accounting period, the result would be neither a profit nor a loss.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period, typically represented as a financial charge for accessing the capital.

Maturity Value

The total amount that will be paid to an investor at the maturity date of a debt instrument, including principal and any accrued interest.

Interest

The cost of borrowing money, represented as a percentage of the total amount loaned, or the income earned on deposited funds.

Bank Discount

What the bank charges to hold a note until maturity (Maturity Value – Proceeds).