Which of the Following Journal Entries Is Created to Adjust

question 3

Multiple Choice

Which of the following journal entries is created to adjust for a previously recorded deferral?

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Definitions:

Corn Future Contract

A standardized legal agreement to buy or sell corn at a predetermined price at a specified time in the future, used as a financial instrument for speculation or hedging.

Spot Price

The current market price at which an asset can be bought or sold for immediate delivery.

Bushel

A unit of volume that is used in agriculture, specifically in the United States, for measuring quantities of grain.

Treasury Bonds

Long-term government debt securities with a fixed interest rate, considered low-risk investments.