A Business Entity Has Only One Accounting Cycle Over Its

question 21

True/False

A business entity has only one accounting cycle over its economic existence.

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Definitions:

Financial Statements

Summary reports that convey the financial activities and condition of a business or individual.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Contra Asset Account

An account that is used to reduce the balance of a related asset account to reflect its adjusted carrying value.