Which of the Following Operating Activities Is Not Correctly Matched

question 19

Multiple Choice

Which of the following operating activities is not correctly matched with the current liability that results from the activity?

• A)Purchase inventory of goods to be sold » Accounts payable
• B)Employees earn wages » Accrued wages.
• C)Customers pay in advance for future purchases » Accounts receivable.
• D)Rent warehouse space to store goods » Accrued rent.

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Definitions:

Liquidated Damages

A predetermined amount of money that must be paid as compensation if a party breaches a contract.

Penal

Relating to, involving, or prescribing a penalty, often used in the context of laws, regulations, or punishments.

Wrongfully Returning

This term does not correspond to a widely recognized legal or business concept as described and thus may require additional context for accurate definition.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to fulfill certain contractual obligations, particularly in cases of breach of contract.