Closing entries serve two important purposes: (1) to return the balances in all temporary or nominal accounts to zero to start the next accounting period and (2) to transfer the net income (or net loss) and the dividends of the period to the Retained Earnings account
a. True
b. False
Indicate whether the statement is true or false
True
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Vivo Co received an 8-month, 9% note for $100,000 from its agent on October 1, 2016 . The note is due on May 30, 2017 . If Vivo accounting period ends on December 31, 2016, how much interest revenue should Vivo recognize during 2016 and 2017? 2016 2017
a. $3,750 $2,250 b. $2,250 $3,750 c. $9,000 $ 0 d. $3,375 $5,625
Merchandise on consignment is not included in the inventory of the company holding the merchandise
Indicate whether the statement is true or false
The first-in first-out inventory method assumes that the newest purchases will be the first sold
Indicate whether the statement is true or false
Those who judge the creativity of an ad in terms of its aesthetic value contend that creative ads can break through the competitive clutter and grab the consumer's attention.
Answer the following statement true (T) or false (F)