12. Which of the following events would 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 be paid on a later date. d Payment for a service performed previously.

12. Which of the following events would 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 be paid on a later date. d Payment for a service performed previously.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

12. Which of the following events would 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 be paid on a later date.

d Payment for a service performed previously.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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