Closing Entries Are Unnecessary If the Business Plans to Continue

question 90

True/False

Closing entries are unnecessary if the business plans to continue operating in the future and issue financial statements each year.

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Definitions:

Fixtures

Items that were personal property but have been attached to property in such a way that they are legally considered part of the real property.

Fee Simple

The most complete ownership in property law, giving the holder full possession and control over their property without time limitations.

Crown

A term used in legal contexts to denote authority and power of the state, or the monarch in countries with a monarchy.

Mineral Rights

Legal rights or ownership interests pertaining to the minerals beneath the surface of a piece of land, including the right to explore, mine, and produce those minerals.