Which of the Following Is Not a Typical Provision in a Real

question 9

Multiple Choice

Which of the following is not a typical provision in a real estate sales agreement?

• A) Legal description of the property's location and size
• B) Rental amount
• C) Whether the sale is contingent on the buyer's obtaining financing
• D) Prorations of taxes, insurance, or other obligations

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Definitions:

Debit Balances

Accounts on the left-hand side of a double-entry bookkeeping system that typically signify assets or expenses.

Permanent Account

An account that carries its ending balance over from one accounting period to the next, such as assets, liabilities, and equity accounts.

Doubtful Accounts

Accounts receivable that a company believes it may not be able to collect, often leading to the creation of an allowance for doubtful accounts.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in its income statement.