Answer the following statements true (T) or false (F)
1. Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the dividends account to retained earnings.
2. The Income Summary account is a permanent account that will be carried forward period after period.
3. Closing entries are necessary so that retained earnings will begin each period with a zero balance.
4. Permanent accounts carry their balances into the next accounting period.
5. If a company plans to continue business into the future, closing entries are not required.
1. TRUE
2. FALSE
3. FALSE
4. TRUE
5. FALSE
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a. True b. False Indicate whether the statement is true or false
Which of the following is NOT always necessary in order for a valid contract to be formed?
a. Mutual assent. b. Legality of purpose. c. A writing. d. Competent parties.
An individual who supplies the skills and abilities needed to produce the goods and services of the business is a/an:
a. owner b. entrepreneur c. manager d. consumer e. employee
In general, if a minor lies about her age in order to induce the seller to contract with her, she cannot disaffirm that contract
Indicate whether the statement is true or false