Butch and Minerva Are Divorced in December of 2014

question 175

True/False

Butch and Minerva are divorced in December of 2014.Since they were married for more than one-half of the year,they are considered as married for 2014.

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Definitions:

Adjusting Entries

Bookkeeping entries executed at the termination of an accounting period to apportion profits and costs to the era in which they effectively took place.

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Expenses Overstated

A situation where the recorded amount of expenses is higher than the actual amount incurred, causing an understatement of net income.

Adjusting Journal Entry

a bookkeeping entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.