An expense account is closed with a credit to the expense account and a debit to Income Summary
Indicate whether the statement is true or false
True
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Some manufacturers give ________ to retailers to pass on to the retailers' salesclerks, to encourage aggressive selling of specific items or lines.
A. advertising allowances B. cash discounts C. quantity discounts D. slotting allowances E. "push money"
If the price increases, but fixed and variable costs do not change, the break-even point:
A) decreases. B) increases. C) remains the same. D) may increase or decrease, depending on sales.
Two methods of estimating uncollectible receivables are ________
A) the allowance method and the amortization method B) the aging-of-accounts-receivable method and the percent-of-sales method C) the gross-up method and the direct write-off method D) the direct write-off method and the percent-of-completion method
Characteristics of a general partnership include all of the following except:
A. Mutual agency. B. Limited life. C. A corporate business income tax. D. Unlimited liability. E. Voluntary association.