Which of the Following Would Immediately Indicate That There Are

question 51

Multiple Choice

Which of the following would immediately indicate that there are circumstances in need of priority consideration when measuring legal risk?

• A) implementation of a standard form contract
• B) matters where the potential loss is high
• C) a review of long-term supplier contracts
• D) topics for inclusion in risk policy manuals

---

Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.

Cash Sales

Transactions where payment is made in cash at the time of sale, without any credit arrangement.

Cash Receipts Journal

A dedicated financial journal that tracks all cash inflows or money received by a business.

Sales Journal

An accounting ledger in which sales of services or goods on credit are recorded, also known as the sales book.