Which of the Following Events Does Not Require a Journal

question 60

Multiple Choice

Which of the following events does not require a journal entry?

• A) Purchase of a one-year insurance policy
• B) Agreement to perform a service at a future date
• C) Performance of a service agreed to at a past date
• D) Payment for a service performed previously

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Definitions:

Total Assets

The combined value of everything a company owns, both current and non-current, as reported in the balance sheet.

Total Revenues

The total amount of income generated by the sale of goods or services before any expenses are subtracted.

Reversing Entries

These are journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period.

Adjusting Entries

Records in finance completed upon the conclusion of an economic term to apportion gains and expenditures to the era in which they authentically occurred.