Which of the Following Events Does Not Require a Journal

question 74

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)Payment for a service performed previously.
• D)All of these choices.

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Definitions:

Dependent Demand

The demand for components or raw materials that is directly tied to the demand for the final product they contribute to creating.

Production Order Quantity (POQ) Model

An inventory management model that determines the most economical quantity of a product to order or produce, balancing setup costs with holding costs.

EOQ Problem

Economic Order Quantity (EOQ) refers to the ideal order quantity a company should purchase to minimize inventory costs including holding, shortage, and order costs.

Lot Size

The quantity of items that are processed, produced, or ordered as a batch.