Farley Agrees to Lease an Apart?ment from Gena for One

question 59

Multiple Choice

Farley agrees to lease an apart?ment from Gena for one day to see Hugh,the president of the United States,deliver a speech in the street below.The speech is can?celed ten days before its date.Farley's con?tract with Gena

• A)is discharged.
• B)is not affected.
• C)is postponed until another event is scheduled.
• D)must be performed immediately.

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Definitions:

Revenue

The aggregate financial gain acquired by a company from its essential sales activities involving goods or services.

Credit Normal Balance

The usual balance side for credit accounts, typically seen in liabilities, equity, and revenue accounts.

Adjusting Entry

Journal entries made at the end of an accounting period to update accounts for accurate financial reporting.

Closing Entry

A journal entry made at the end of an accounting period to transfer temporary accounts to permanent accounts and prepare the books for the next period.