An Adjusting Entry Normally Affects

question 65

Multiple Choice

An adjusting entry normally affects

• A)balance sheet accounts only
• B)income statement accounts only
• C)an income statement account and a balance sheet account
• D)balance sheet accounts or income statement accounts only

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Definitions:

Express Repudiation

The act of clearly and explicitly refusing to perform an obligation or duty outlined in a contract.

Obligations Refusal

A situation where an individual or entity declines to fulfill a duty or agreement previously committed to.

Liquidated Damages

A set sum of money required as a penalty for not fulfilling contractual obligations.

Injunction

A legal order issued by a court that directs an individual or entity to do or to refrain from doing a specific act, used to prevent harm or to preserve the status quo pending a final determination of the case.