Conventionally Accountants Measure Income

question 38

Multiple Choice

Conventionally accountants measure income

• A) By applying a value added concept
• B) By using a transactions approach
• C) As a change in the value of owners' equity
• D) As a change in the purchasing power of owners' equity

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Definitions:

Semiannual Interest

Interest on a loan or bond that is calculated and paid twice a year.

Face Value

The nominal or dollar value printed on a bond, note, or other financial instrument, representing the amount due at maturity.

Journal Entries

Are the record of all transactions a company makes, detailed by date, in the accounting system.

Secured Bond

Bond issued by a corporation that pledges specific assets as security to meet the terms of the bond agreement.