A Clause Apportioning the Liability and Responsibilities of the Parties

question 63

Multiple Choice

A clause apportioning the liability and responsibilities of the parties in the event of an unforeseeable occurrence, such as a typhoon, tornado, or other disaster is a(n) :

• A) act of state clause.
• B) OPIC clause.
• C) letter of credit.
• D) force majeure clause.

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Definitions:

Salary Expense

An expense account that records the total amount of salary payments made to employees over a period of time.

Accrued Salaries

Salaries that have been incurred but not yet paid, representing a liability for the company.

Closing Entries

Entries recorded at the close of an accounting period to move balances from temporary to permanent accounts.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to prepare financial statements and ensure the ledger accounts are balanced.