Which of the Following Would Be an Invalid Restrictive Covenant

question 31

Multiple Choice

Which of the following would be an invalid restrictive covenant in a deed?

• A) A requirement that all buildings are of a farmhouse style, painted either white, yellow or gray.
• B) A requirement that all homes contain a double garage.
• C) An agreement not to sell to people of Middle Eastern descent.
• D) An agreement requiring a minimum size of 2200 square feet for homes.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby preparing the accounts for the next accounting period.

Permanent Accounts

Balance sheet accounts whose balances are carried forward to the next accounting period, including assets, liabilities, and equity accounts.

Temporary Accounts

Accounts that track financial results for a specific period before being reset by transferring the balance to permanent accounts, including revenue, expense, and dividend accounts.

Trial Balance

A bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit columns to ensure accuracy in the accounts.