Which of the Following Situations Does Not Involve an Accrual

question 15

Multiple Choice

Which of the following situations does not involve an accrual?

• A)Recording accrued interest.
• B)Recording depreciation.
• C)Recording unrecorded wages.
• D)Recording unrecorded revenue.

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Definitions:

Pre-Existing Duty

An obligation that a party is already legally obliged to perform, which is not considered sufficient to serve as consideration for a new contract.

Legal Sufficiency

The adequacy of evidence in meeting legal standards to support a finding or conclusion in a legal proceeding.

Bargained-For-Exchange

A fundamental concept in contract law that requires each party to provide something of value to the other for a contract to be valid.

Statutorily Enforceable

Refers to rights or obligations that are created, recognized, and enforced through specific statutes or laws enacted by a legislative body.