Diverse Diversions,Inc

question 51

Multiple Choice

Diverse Diversions,Inc.,makes computer,video,and mobile device games.Ember buys a hard copy of Final Infinity.Inside the package is a shrink-wrap agreement.With respect to the contract for the game's purchase,the shrink-wrap agreement may not be enforced if​ 

• A) ​Ember does not read it. 
• B) ​Ember learns of it after using the game. 
• C) ​Ember learns of it before using the game. 
• D) ​the play of the game is poor.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the financial statements, representing liabilities.

Accrued Revenues

Accrued revenues are earnings recorded in the financial statements for goods delivered or services provided, although no cash has been received yet.

Prepaid Items

Prepaid items refer to expenses paid in advance for goods or services to be received in the future.

Adjusting Entries

These are journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.