Which of the Following Transactions Is Most Likely Not to Result

question 143

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 not received in advance.
• B)Purchase of inventory for sale in the subsequent period.
• C)Purchase of office equipment.
• D)Purchase of a two-year insurance policy.

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Definitions:

Restrictive Covenant

A clause in a contract or deed limiting what the owner of the property can do with it.

Injunction

A court order requiring an individual or entity to do or cease doing a specific action.

Competing Business

A business that offers the same or similar products or services as another business, thereby competing for the same market share.

Unconscionable

Referring to an agreement or contract that is so unfairly one-sided that it is considered oppressive or shocking to the moral conscience.