The amount payable to a person as consideration for the use of rights vested in him is
Correct answer: A. Royalty
- A. Royalty
- B. Dividend
- C. Purchase consideration
- D. Installment
Explanation
Royalty is the consideration paid for using rights owned by another person, such as copyright, patents, or mineral rights. Dividend and purchase consideration relate to different transactions.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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