1. interest expense is calculated by multiplying the market rate of interest x ______.

A. carrying value

B. present value

C. none of these above.

2. Mark collects 75,000 in advance for sales on March 1,2019.

He earns the money evenly every month for 24 months

At 12/31/2019. What is the balance in the deferred revenue account on his year end balance sheet.

A. 75000

B.46875

C.43750

3. Mark collects 75,000 in advance for sales on March 1,2019.

He earns the money evenly every month for 24 months

At 12/31/2019. What is the amount of sales he recognizes in his year end income statement

A. 31250

B.28125

C. none of these above

3. The principles of accrued accounting is being applied when revenue is recognized when it has been earned

True or False?