Which of the Following Transactions Is Most Likely Not to Result

question 198

Multiple Choice

Which of the following transactions is most likely not to result in an adjusting entry at the end of the period?

• A) Performance of a service for which payment was received in advance
• B) Payment of this month's rent
• C) Purchase of office equipment
• D) Purchase of a two-year insurance policy

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Definitions:

Consumer Product Parties

Social gatherings aimed at the demonstration, promotion, and sale of products to consumers in a private home setting.

Cancellation Form

Under the Federal Trade Commission’s Cooling-Off Rule, a document that can be filled out to terminate an order for consumer goods or services made at the buyer’s home for consumer goods or services valued at $25 or more.

Truth-in-Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Unauthorized Charges

Expenses made to a credit card, bank account, or other financial account without the account holder’s approval or knowledge.